Coinbase Announces Supporting Ethereum’s ERC20 Tokens
March 28, 2018
Coinbase exchange has made public its plans to add ERC20 token support.
For historical reasons Coinbase’s announcements have always caused retail investor inflows into the crypto market, sharp price swings and market manipulation allegations. This time however it hasn’t produced any effect while prices falling all around. Still Coinbase supporting ERC20 will have bearing on the crypto market.
ERC20 is a standard used by Ethereum tokens and smart contracts. Though Ethereum’s market share has shrank drastically over the latest time, it has been a dominant power on the ICO market in 2017. For instance, most of successful currencies like EOS that collected $185 mln in 5 days only were designed on the basis of ERC20.
Coinbase has got a line of products to be affected by the update. The first and the most crucial for the institutional investors is Coinbase Custody. Coinbase Custody, many retail investors are unaware of, is a digital asset depository providing for safe storing and financial control for large holding companies. Nobody knows how many clients make use of the service but it is regarded as the most remarkable one in the US. Adding ERC20 token support may give way for more various set of cryptocurrency trusts.
GDAX, a Coinbase’s platfrom for digital asset trading, is currently supporting only Bitcoin, Ethereum, Litecoin and Bitcoin Cash but will “wait for additional regulatory clarity” before adding more assets. It is still unclear what they meant and what judicial fields they expect regulatory guidelines from.
Coinbase exchange, the top of the company’s product line, is going to stick to the policy it set after Bitcoin Cash insider trading scandal and is to add new currency pairs as soon as they come to GDAX.