Coinbase which has recently been mocked for announcing testing of tokens and not adding them, has finally announced that it will open for inbound transfers of ETC on Tuesday, August 7 on its Coinbase pro platform. As per the announcement the engineering team final testing of support for Ethereum Classic (ETC).
Ethereum Classic [ETC] price spikes after the announcement
Ethereum Classic is the 15th Largest coin by market cap according to Coinmarketcap with a market cap of over USD 1 billion. As the news hit the markets the prices s sudden spike of close to 18%. While reporting the price of ETC on Coinmarketcap was $16.53 USD around 14% up.
The coin was traded heavily on all major crypto markets around the globe including OKEx, Binance, Bitfinex and Huobi generating the maximum volumes, showing investors and traders positive support to the news.
What Ethereum Classic does to Coinbase products
As the final testing gets completed, Ethereum Classic will be added to all products that Coinbase offers. Its impact would be as follows according to the official Coinbase blog post that confirmed the news.
- Coinbase Custody — the Custody team is planning to add support for inbound transfers and withdrawals of ETC.
- Coinbase Markets — the Markets team, is planning to add trading support for ETC which it intends to allow 24–48 hours of transfers through Pro/Prime before opening the markets. In accordance with Coinbase’s Trading rules, all ETC books will open in post-only for a minimum of 10 mins. Once sufficient liquidity is established, trading will then be enabled on Pro and Prime.
- Coinbase Pro and Prime— the Pro and Prime Team team is planning to add trading support for ETC. One thing to be noted here is that customers who previously had an Ethereum Classic balance on the platform as a result of the 2016 Ethereum hard fork and did not elect to withdraw their funds prior to January 2017 will receive a corresponding Ethereum Classic credit on their Pro account.
- Coinbase Asset Management — any asset listed on Coinbase Markets will be added to Coinbase Index in accordance with the Coinbase Index methodology. Coinbase Index Fund will rebalance to include ETC.
- Coinbase Consumer — per our previous guidance, Coinbase Consumer will list assets only after they are listed on Coinbase Pro and Prime. The team plans to add support for ETC on Coinbase Consumer when sufficient liquidity is established. It expects this to occur approximately 1–2 weeks after trading begins on Pro and Prime. As Ethereum was not supported on Coinbase Consumer until after the fork, therefore there are no corresponding Ethereum Classic credits for Coinbase Consumer customers.
Also, as far as geographies are concerned, ETC will be available everywhere that Coinbase is available.
With the addition of ETC, Coinbase seems to be on track with its strategy of adding and testing new coins on its platform. With this addition, it has also silenced a few of the critics that mocked the exchange of just making announcements and not actually adding new coins.
Will Coinbase follow suit and add the 5 ERC20 coins as well which it had announced to be testing? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.