HARYANA, India – The $1.6 billion cryptocurrency exchange Coinbase has recently announced that it is working on an infrastructure that will enable them to add ERC20 tokens in their platform.
Developers in Ethereum are utilizing ERC20 tokens to incorporate tokens into their company products. These tokens are currently regarded. With Coinbase developing ways for easier assimilation of tokens, this action could be a significant step toward the incorporation of different tokens down the road.
Per Business Insider, a Coinbase representative said that even though this project will mark the dawn for new assets in their platform, it will still take months of engineering work. After the completion of the project, Coinbase still intends to wait for improvement on regularization before adding extra assets to their products.
Coinbase currently dominates the majority of the cryptocurrency community. Bitcoin is physical proof of the significant influence of Coinbase over the digital currency market.
A prevailing hypothesis among cryptocurrency critics is that once Coinbase welcomes ERC20 to their platform, this will have a massive impact on the price, just like how Coinbase pulled Bitcoin Cash’s amount from $2000 to $9,500 when trading for the said cryptocurrency was enabled in the Coinbase platform.
Meanwhile, ERC20 is not a type of cryptocurrency, but many people use them in the same way.
Although tokens are necessarily a part of Ethereum, which is a cryptocurrency, the latter and token are still different things. For instance, while cryptocurrencies can be converted into fiat currencies, tokens, on the other hand, can only serve as gift cards or loyalty points for a specific platform. Anything outside of that ecosystem is out of the question.
Even so, people were able to find the value in ERC20 tokens when startup companies began to introduce initial coin offerings. The digital coin that investors purchased could be used to trade with a cryptocurrency, sort of how one would sell a stock.
There are currently 700 individual tokens that are listed in the Coin Market Cap. Although Ethereum is not the only cryptocurrency that uses tokens, almost all of digital coins make use of the ERC20 tokens, which Coinbase will soon adopt.