On Monday 26th of March, Coinbase, world’s largest exchange, announced its intention to support the Ethereum ERC20 technical standard. The event will take place in the coming months.
What is ERC20?
ERC20 is used by Ethereum that allows companies to tokenize their projects in what so-called ICO. It serves to represent the asset. Currently, there are more than 500 ICO projects issued with ERC20 tokens and smart contracts. Hence, ERC20 addition means that more cryptocurrencies will join the leading exchange. But, at this time, Coinbase hasn’t declare yet any specific asset to be added to its exchange.
Adding new assets is a step taken by Coinbase forward expanding its operations. Noteworthy, on the one hand, GDAX, one of Coinbase products, limits its operation with only 4 major cryptocurrencies which are Bitcoin, Ethereum, Litecoin and Bitcoin Cash. On the other hand, ICOs tokens built on ERC20 tokens have been viable competitors to these cryptocurrencies on other exchanges. Noticeable ICOs rank at the top of the market cap list.
What the statement means for Coinbase products?
As what regards GDAX:
”the GDAX team will wait for additional regulatory clarity before we decide which ERC20 assets to support on GDAX. “
The main platform, Coinbase will list assets after they are listed on GDAX but not all tokens on the latter will be listed on Coinbase
The announcement in Coinbase official blog states that only few evaluations are underway. Also Custody will support more assets than GDAX or Coinbase.
Even the announcement failed to awaken the cryptocurrency market. Prices stumble in precautious mouvements. However, EOS,Stellar and Monero among many similar coins stride.