Coinbase to support ERC20 tokens! That’s terrific news for all crypto investors. That’s because Coinbase one of the largest exchanges in the market, and any decisions they make have an impact on the entire market. When the news broke out about the Coinbase’s support for Bitcoin Cash, the BCH price spiked up a lot. That is the kind of influence Coinbase has on cryptocurrency market.
Last month, the company obtained an E-money license from the UK financial regulator to serve their ever growing user base. Now, the company in a public statement announced that it would support ERC20 based tokens of Ethereum platform.
However, the new ERC20 assets will be supported by Coinbase only after they are listed in the GDAX cryptocurrency exchange which is also a product of Coinbase. Also, the company noted that at any given point in time GDAX would have more currencies to trade than that of what Coinbase wallet supports. Moreover, even If an ERC20 token is listed in GDAX, there will be no guarantee that in future the coin will be supported by the Coinbase wallet service.
One Good News
As the Coinbase supports ERC20 assets, there is one good thing happening. If you have sent or received ERC20 coins to a Coinbase address before, you would have lost those assets. But as the support for ERC20 tokens is coming in, there are chances for these lost funds to be recovered.
Coinbase has also had some services other than a wallet and a Cryptocurrency exchange. Coinbase Custody is a service that holds and maintains cryptocurrency assets for high net worth individuals and institutions. The ERC20 support for GDAX will only come only after their introduction in the Coinbase Custody service.
Also, Coinbase manages a cryptocurrency index fund, which currently includes Bitcoin, Ethereum, Bitcoin cash, and Litecoin. So, Any asset introduced in the GDAX cryptocurrency exchange will be available in the cryptocurrency index fund.
Finally, there is one bad news for merchants using Coinbase Commerce. As of now, the company had made no plans for supporting ERC20 tokens for Coinbase merchants.