Coinbase Announces the Listing of Its First ERC-20 Token

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Photo Credit: Blockonomi

Following widespread consultations, United States leading cryptocurrency exchange, Coinbase has announced plans to start listing 0x (ZRX) token. According to reports, this would be the first time Coinbase would be supporting any ERC-20 token.

For those who aren’t familiar with the cryptocurrency space, ERC-20 tokens are tokens developed and used only on the Ethereum powered platform with ERC meaning Ethereum Request for Comment while 20 represents the number for this requests. With ERC-20, creating new token is fast and easy, little wonder why ETH became a popular crowdfunding companies for Initial Coin Offerings (ICOs).

Having made the announcement, Coinbase has commenced support for ZRX on its professional platform, CoinbasePro, regardless, trading would only kick off once the exchange receives sufficient liquidity. Also, the cryptocurrency exchange has noted that it would make an official announcement once the token becomes available on Coinbase.com as well as on its app.

While ZRX trading will be available for trading without restrictions, it would be unavailable to cryptocurrency enthusiasts looking to participate in the state of New York, this is only temporary though. At the moment, Coinbase has divided the launch into four different stages for each trading pair including ZRX/USD, ZRX/EUR and ZRX/BTC. However, it wouldn’t initially provide support ZRX/GBP pair.

In what the cryptocurrency exchange has called the “transfer only stage” customers will only be allowed to transfer ZRX to their CoinbasePro accounts, without been allowed to place orders. On the flipside, the second “post-only” stage will allow customers post limit orders with no matches. The last stage according to Coinbase would allow for full trading.
It would be recalled that Coinbase announced in July, that it was considering listing five digital assets including Stellar Lumens (XLM), Cardano (ADA), Zcash (ZEC), Basic Attention Token (BAT), and ZRX — to its platform.

Nevertheless, Coinbase is of the opinion that the new assets it plans to list “will require additional exploratory work,” while also categorically stating that some cryptocurrency assets would only be available to buy and sell, stripping customers of the ability to send or receive them using local wallets.

This new decision to list ERC-20 token is coming several months after the company initially stated that it wouldn’t support the listing of ERC-20 tokens on its platform. According to the cryptocurrency exchange, “After evaluating factors such as liquidity, price stability, and other market health metrics, we may choose to add any ERC-20 asset added to GDAX to the Coinbase platform,”

At the moment, ZRX is exchanging for $0.76 and has a total market cap of almost $407 million.