Coinbase ERC20 Token Support Is a Big Deal for Crypto Industry: Here’s Why
Why is Important Coinbase’s Support for Ethereum ERC-20 Tokens?
Coinbase, one of the most important cryptocurrency exchanges, brokerages and platforms, has decided to add support for ERC-20 tokens and Ethereum testnets to its Toshi platform. Coinbase operates this ethereum-based decentralized application browser and wallet which will be supporting a wide variety of currencies.
Some days ago, Coinbase announced that it decided to integrate Ethereum Classic (ETC) to its platform. The markets reacted very well to this information and Coinbase explained that in the next months, the intention is to support ERC-20 tokens, including ICOs and independent blockchain projects.
And this project has been discussed in several occasions. Coinbase wants to keep competitive by offering more crypto-related assets on its different platforms and not just 5 different cryptos.
Coinbase released an announcement on June the 12th that reads:
“We have previously announced our intention to support the ERC20 technical standard and Bitcoin forks. We will announce the intention to add specific assets within those categories prior to final engineering integration. This is consistent with our public process for adding new assets.”
The truth is that the decision to list Ethereum Classic has shocked many traders. There were other coins that may have more support including Ripple or EOS. But Dan Romero, general manager and vice president of Coinbase explained that the company needs to integrate assets that are not categorized as securities by the United States.
Indeed, the US Securities and Exchange Commission (SEC) clarified that Bitcoin and Ethereum are not securities, which is very important for the market. Moreover, the clarification for the SEC has also meant that Ethereum Classic, is not a security.
In order to start thinking about the future integration of ERC20 tokens and ICO tokens, Coinbase decided to acquire paradex, a decentralized cryptocurrency exchange. After it, some new features have been added by Toshi, Coinbase’s native Ethereum application.
Coinbase has a very experience team with years of experience in the traditional financial market. With all the latest developments and the intention to add new currencies to its platform, Coinbase may become a key player that will help tokens to be widely adopted and used by the economy, including enterprises and individuals all over the world.