In a move that is bound to give the Ethereum community some good news amidst the beating that the Ether currency is taking in the market at the current moment, giving more hope for liquidity and further access to ERC 20 coins, Coinbase announced that it will be adding support for ERC20 tokens to its overall operations. The Coinbase ERC20 announcement signals positive growth for the market from a variety of standpoints as Coinbase has geared for regulatory compliance from the start. The Coinbase ERC20 announcement shows that the company feels that there may be more regulatory clarity on ERC20 tokens as the year progresses.
Elaborating on the announcement, the popular cryptocurrency exchange mentioned that even though the support for ERC20 technical standard is being announced today, any announcements to add specific tokens would not be made until its exchange team has more clarity on the regulatory standards for ERC20 tokens.
To clarify, ERC20 is a technical standard on Ethereum platform which refers to the best practices which a custom token developer should adhere to while creating tokens on Ethereum, ensuring that the tokens would perform without any issues during day to day operations. Thus, the term ERC20 is often used to refer to tokens that have been created on the Ethereum platform.
By adding the support for ERC20, Coinbase has opened doors to the possibility of adding more cryptocurrencies to its offerings.
The exchange also mentioned that this particular decision will help pave way towards recovering any ERC20 tokens that are sent towards its GDAX Ethereum address.
Furthermore, the exchange elaborated on what this means for its other products as well. The exchange mentioned that Coinbase Custody will benefit by potentially seeing more as assets added, as the custody team is “evaluating a set of assets to support for deposits and withdrawals. Note: Custody will likely support more assets than those available to trade on GDAX or Coinbase for the foreseeable future.” Hinting that the exchange is going to be adding additional assets to trading very soon.
The exchange also mentioned that the GDAX team would be waiting for “additional regulatory clarity” prior to deciding on ERC 20 assets that will be supported on the GDAX platform.
In regards to the Coinbase Asset Management aspect – the team over at Coinbase stated that “any asset listed on GDAX will be added to the Coinbase Index on a market capitalization weighted basis.”
It is important to note that Coinbase will only list assets after they are listed on GDAX, stressing criteria like “liquidity, price stability, and other market health metrics”.
Additionaly the platform stated
“It’s also worth repeating that GDAX will likely have more assets listed on the platform than the Coinbase platform, i.e. listing on GDAX does not guarantee listing on Coinbase.”
Developments from Coinbase could soon be seen for erc20
Since Coinbase confirmed that its team is analyzing additional factors and waiting on “regulatory clarity” before it could announce the addition of any ERC20 tokens on its platform, it would not be presumptuous to say that it could have at least a couple of ERC20 tokens added to the platform in the next few months.
Are you excited about the Coinbase ERC20 announcement?