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Why did Coinbase go for Ethereum Classic (ETC) instead of Ripple (XRP)?

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The largest US-based crypto exchange, Coinbase, made an unexpected reveal yesterday, June 12, when it announced that it will list Ethereum Classic (ETH). This is a great news for this cryptocurrency, but many were left astonished that the exchange skipped over a dozen cryptos with larger volume and market value, especially Ripple (XRP).

Coinbase chooses Ethereum Classic

The big reveal by Coinbase, the largest crypto exchange of the United States, left crypto enthusiasts completely confused, and it revolves around the exchange’s decision to add Ethereum Classic (ETC) to its list of cryptos. Many expected that the exchange would add a larger crypto, like EOS or Ripple, which is why this decision is hard to understand.

ETC is currently the 18th most valued cryptocurrency as per CoinMarketCap, while Ripple (XRP) is at the third place. Because of this, it is easy to understand why the community is so confused. Coinbase’s general manager and vice president, Dan Romero, noticed the reaction of the Coinbase’s community and has said that ETC came before XRP because accepting it is in compliance with the current local regulations.

He also added that this is not the end and that the exchange will keep adding as many assets as it can, as long as it can be done in a secure manner, and be in compliance with the crypto laws.

Why ETC?

Ethereum Classic originally came to be as one of Ethereum’s hard forks. It was made by a group of developers who decided to fork Ethereum’s chain after it significant losses of DAO (Decentralized Autonomous Organization.) investors. In time, ETC’s development was shared between a few groups of developers, one of which was, and still is IOHK, the group that started Cardano (ADA).

ETC still shares a lot of Ethereum’s features. It is sustained by an open-source community, and it is completely decentralized. This is also one of the reasons why it came before cryptos like EOS and Ripple, which are company-owned cryptos.

Coinbase’s CEO, Brian Armstrong, commented on the exchange’s choice and said that this is only the start of the new project that will see many more cryptos added. The exchange, as well as Armstrong, seem to be pretty excited about this, but they will first support ERC-20 tokens, as well as those that came from Bitcoin forks, before moving on to the rest of the cryptos.

Why not Ripple?

As mentioned previously, one of the large reasons why Coinbase decided to pass on Ripple is the decision to first add ERC-20 coins and Bitcoin forks. However, there seems to be more to it than just that.

One of the biggest debates these days is whether Ripple is a cryptocurrency or a security. Ripple is trying to act like a crypto, but the problem lies in the fact that it is company-owned, or centralized. This is the opposite of what cryptocurrency is imagined to be, which is an online currency that doesn’t have a governing entity.

Despite this, Ripple is still a digital coin, and the arguments for both views on its nature just keep piling up. The answer whether Ripple is a security or not currently doesn’t exist, and until this matter is settled, Ripple will probably be left alone by Coinbase.

Still, Ripple’s development team has mentioned that XRP will join the decentralized cryptos in due time, which is something that it can look forward to. If and when it does, it is believed that many more exchanges would be willing to list it, which is expected to, in turn, increase its price.

As for ETC, its price already went up by 25% following the announcement that it will join Coinbase. However, in the last 24 hours, it dropped again by 14%, which puts its price at $13.52 at the time of writing.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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