Coinbase, the renowned cryptographic currency exchange, announced yesterday that it plans to add ERC20 support, which sets the standard for Ethereum-based tokens, to its systems.
Until now, Coinbase's announcements have caused massive sales of retail investors, fluctuating price fluctuations and even market manipulations. It is not known how the market will react to this announcement while the bear market is experiencing. The addition of Coinbase's ERC20 support will have a wide range of effects over the years in the crypto money market, and it is a fact that it can not be ignored.
What is ERC20?
ERC20 is the standard used by Ethereum tokens and intelligent contracts. It serves as an interface that anyone who wants to create a token or who writes a smart contract has to follow. There are 59,948 Ethereum contracts made so far. Ethereum's market share has shrunk, but in 2017 ICO almost dominated the bull market alone.
For example, it is one of the most successful crypto currencies, such as EOS, which earns $ 185 million in 5 days. The ERC20 tokens are seen by ethereum supporters as the basis for ICO and Blockchain applications.
There are a number of products that Coinbase's decision will affect. The first and potentially the most important thing for institutional investors is Coinbase Custody. Coinbase Custody is a digital asset storage service that provides secure storage and financial control of large warehouses.
It is not known how many users use Custody, but it is considered to be the most important digital asset guard in the US. For this reason, the addition of ERC20 tokens can open the door for a more diverse cryptographic currency security.
CoinBase Asset Management will include new assets on a corporate value basis, market value basis. Coinbase also said that Coinbase Commerce, a payment system platform, has no plan to accept payments in another crypto currency. This emphasizes the company's cautious approach, even if it is bad for the money that wants to be used for real-time transactions.
There is no effect on the market of this news at the moment. Normally, the ethereal-based crypto money will move, this news, Twitter's crypto advertising can not stop the news.