Adding Ethereum ERC20 Token Support to several of its suite of products
There will be “some major changes in the market in the months to come”
Coinbase plans to make big moves in 2018, first it made reporting your tax owed much easier for users who want to stay compliant with the IRS, then you saw it on the intro to the popular HBO show Silicon Valley, right along with other Internet giants like Facebook, and Google. Now the largest cryptocurrency exchange in the United States has announced that they will be adding Ethereum ERC20 Token support to several of its suite of products.
As defined by Coinbase “ERC20 is a technical standard used for Ethereum smart contracts. ERC20 assets have become a popular way for teams to quickly build interoperable contracts/assets. More recently, our Ethereum wallet and Dapp browser Toshi added native support for ERC20.”
By the looks of it Coinbase is going mainstream and trying to entice institutional hedge fund investors, and quite possibly create an even bigger crypto boom than we have seen before. But wait a second, don’t get carried away. Coinbase won’t be adding just any ol’ altcoin. The organization released a Digital Assets Framework in 2017 that all coins / tokens will have to meet.
These assets will have to be compliant with any new regulatory scrutiny, be backed by solid cutting edge tech with a strong team, be in demand, have a sufficient market supply, have a healthy ecosystem, thoughtful governance, and scalability. That is how you seduce institutional investors and ultimately attract the general public when the market goes to the moon. Now is the time to make well researched solid Ethereum-based altcoin investments. Because like I said, we should see some major changes in the market in the months to come. But please, I am not giving any investment advice, this is only conjecture. That being said, the right investments made now may change lives. There is time to make a well educated decision though, Coinbase is waiting for additional regulatory clarity.
The first product with support for the new coins will be Coinbase Custody, followed by GDAX, Coinbase asset management, then Coinbase. Coinbase Commerce has no planned ERC20 support at this time.
What ERC20 coins are you going to invest in before they are announced, or are you going to wait for the official word from Coinbase, and watch the market? Let us know in the comments below!
Author: Steven Johnson