Coinbase, the famous cryptocurrency trading platform, has acquired Paradex, a virtual currency trading network that allows users to buy and sell digital currencies with each other without having to rely on a third party. The information has been released by Coinbase on Wednesday, according to CNBC.
With this decentralized ERC20 token cryptocurrency exchange acquisition, Coinbase will make some enhancements to the platform, and launch its services to customers from all over the world. This would allow individuals to trade a wide variety of tokens, apparently ‘hundreds’ of them, as the company explained.
Paradex is a decentralized exchange due to the fact that it allows its users to trade virtual currencies without storing them on their system. This means that traders may be able to sell and buy cryptocurrencies directly from their digital wallets.
One of the main points of decentralized exchanges is that the security is enhanced. Hackers will not be able to steal coins or hack the exchange because they will not be storing any digital asset in wallets or servers. The exchange is between individuals.
At the moment, Paradex has 10 employees, and it will allow Coinbase to expand the number of virtual currencies that it is offering to traders all over the world. At the moment, Coinbase features Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).
The fact is that many investors are searching new cryptocurrencies in the market, which would allow them to have more future earnings. At the moment, there are more than 1,600 tokens in the market and the number will keep growing during the rest of the year, and Coinbase wants to remain competitive.
Coinbase is also having meetings with US regulators so as to obtain a banking license that would allow it to be one of the few regulated exchanges in the market. At the same time, the last week, Coinbase launched a new service for institutional clients known as Coinbase Custody.
How do you guys think the Paradex purchase from Coinbase will effect the industry as a whole? As Coinbase continues to adopt and buy up existing businesses, it only helps users have more access readily available through mainstream platforms such as Coinbase and all of its new acquisitions.