Yesterday, Coinbase announced plans in the coming months to add support for technological standard ERC20.
As a rule, announcements Coinbase cause a huge influx of retail investor, volatile price fluctuations, and even accusations of market manipulation. The latest announcement is no exception, and called for the bearish gloom — prices began to decline in all areas.
However, regardless, as now the market will continue to react to this event, the addition of one of the largest exchanges support ERC20 can make a big difference for kaptarenko in the future.
ERC20 — is the standard used by the tokens, Ethereum and smart contracts. It provides the interface for anyone wanting to release a token, or to write a smart contract. At the moment there is a total of 59 948 Ethereum contracts. Although the market share of Ethereum is somewhat reduced, but the blockchain has dominated the market the ICO over the last year.
Many of the most successful currencies was created based on Ethereum. Among them is the EOS which gathered $ 185 million in just 5 days, Bancor, raised $153 million, and at least two more alithina funded at $ 70 million or more. Tokens ERC20 considered by fans as the basis for Ethereum ICO and blockchain applications.
Coinbase has a number of products that will be affected by the decision of this implementation. The first and potentially most important for institutional investors is Coinbase Custody. It is a service of storage of digital assets for large holding companies. Adding tokens ERC20 can open doors to a variety of cryptocurrency trusts.
As for adding ERC20 for GDAX, this platform for trading digital assets Coinbase, which currently supports only Bitcoin, Ethereum, Litecoin and Bitcoin Cash, will “wait for more regulatory clarity before adding more assets.” It is unclear what this means, in some jurisdictions they are looking for more guidelines for regulation or what their legal problems.
Coinbase Asset Management, index Fund companies will include any new assets based on market capitalization. That is, if you invest $100,000 in a new token ERC20, which has 20% of the market capitalization of the coins on Сoinbase, you will receive $20 000 of this token.
Coinbase also announced that their payment gateway Coinbase Commerce, does not plan to accept payments in any cryptocurrency. This message underlines the careful approach of the company. Recall that recently there was a news about a bug that made users of the exchange to steal any number of Ethereum.