Coinbase has added trading support for Ethereum Classic. ETC is now one of just five coins on Coinbase (along with Bitcoin, Ethereum, Litecoin, and Bitcoin Cash). Ethereum Classic forked away from Ethereum in 2016. Its inclusion by Coinbase proves ETC skeptics wrong, establishing the Ethereum fork as one of the world’s most visible cryptocurrencies.
Coinbase Review: an Evolving Gatekeeper
Coinbase is perhaps crypto’s most significant gatekeeper. Called “the Facebook of crypto” by many, Coinbase is where most new users buy their first digital currencies, as we’ve explained in our in-depth Coinbase review. Digital coins included on the trading platform are elevated in the industry. New users who enter the markets for the first time see these coins and think of them as the most legitimate. Investors who hold these tokens become more confident in the long term potential of their holdings.
The addition is clearly a good thing for Ethereum Classic and its users, but why did Coinbase select ETC? Well, the answer might not be directly related to Ethereum Classic’s quality as a blockchain project but instead to Coinbase’s crypto philosophy.
Coinbase has expressed interest in adding many more altcoins to the platform. Due to the nature of hard forks (holders of the parent coin receive new forked coins equal in number to their holding), Coinbase and its users received a great deal of Ethereum Classic when the coin forked in 2016. So just as Coinbase added support for Bitcoin Cash, it only makes sense to add Ethereum Classic.
Coinbase has also expressed that it doesn’t want to add coins from centralized blockchains. This is why the exchange giant passed over larger coins like Ripple and EOS, as both of these are considered to be centralized.
Coinbase has many competitors, and it must innovate in order to remain #1. Coinbase is adding a custody service for institutional investors, with over 40 altcoins supported. Additions of coins like Ethereum Classic to the basic platform are yet another way Coinbase can stay ahead of the curve.
Despite high fees and occasional lack of transparency, we still think Coinbase has an important role to play in 2018. Knowledgeable users who can buy coins without the high commission fees should do so. But for newcomers who want an intuitive and friendly platform for buying their first coins, Coinbase performs above and beyond the rest, as we’ve pointed out in our Coinbase review.
We don’t think Coinbase is done growing. Expect more coin support in 2018, and for Coinbase to gradually become a truly mainstream company in the months and years to come. It may never be a true One Stop Shop, but Coinbase’s ongoing expansion is an asset for Ethereum Classic and the whole cryptocurrency industry.
*Information in this article should not be taken as investment advice.