As one of the most popular cryptocurrency exchanges in the world, Coinbase can increase awareness, legitimacy, and liquidity for any cryptocurrency. Read on to learn what investors should know about the impact of adding ERC-20 token support.
On March 26, 2018, the popular cryptocurrency exchange, Coinbase, announced that they had added support for Ethereum ERC-20 tokens. While no specific token additions have been made public, the move makes it clear that Coinbase intends to add ERC-20 tokens at some point in the near future.
The news comes just a few months after Coinbase CEO, Brian Armstrong, confirmed that the exchange intends to add new coins in 2018. It’s important to know that Coinbase is actually a collection of a few different sub-organizations. Coinbase itself is a software wallet application, but there is also Coinbase Asset Management that allows for investors to buy an index of multiple cryptocurrencies as well as GDAX – the actual cryptocurrency exchange for trading.
During the 2017 bull market, Coinbase became one of the most popular gateways for new investors to buy cryptocurrencies. In fact, the Coinbase app was at one point the #1 app on the Apple iOS app store.
Even in the current bear market, a listing on Coinbase could provide enough exposure for any cryptocurrency to send its market cap surging up. As a result, many people are speculating about Coinbase’s plans, hoping to cash in by predicting the additions before Coinbase announces them publicly.