9 Oct, 2019

Coinbase to add support for ERC20 Tokens

ERC20 has been the technical standard used by hundreds of ICOs to create tokens on Ethereum using Smart Contracts. Billions of dollars were raised in 2017 alone for ERC20 tokens. Coinbase, the world’s largest exchange has announced that they will start listing these ERC20 tokens soon.

Though Coinbase hasn’t announced which tokens would be on their platform, they’ve announced that they’ll be available across all their products. Coinbase Custody, a service for large institutions to store Cryptocurrencies will have maximum support for ERC20 tokens since they just store Cryptocurrencies.

GDAX, Coinbase’s own Crypto to crypto exchange will support multiple ERC20 tokens. But for now, the company will wait it out for clear regulations before deciding which tokens to list. After listing on GDAX, coins with healthy volume and price stability will be included in Coinbase for customers to directly trade it using fiat currencies.

Not everyone is happy with Coinbase entering the ERC20 market. Coinbase brings in a huge number of retail investors and huge price swings along with it. Coinbase has also been accused of insider trading when Bitcoin Cash surged nearly 100% right before the official announcement.

Either way, this was inevitable. Now that the market has been stagnant for a few weeks, Coinbase has to look for other assets to get more customers in. Support for ERC20 tokens opens Coinbase up to hundreds of new tokens instantly.