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Coinbase GDAX Adds ERC20 Support: What Does This Mean for Investors?

Coinbase Announces ERC20 Support and Hints at New Coins Being Listed in the Coming Months

Coinbase/GDAX announced that they will be adding support for ERC20 tokens (a common token type of the Ethereum Network). They haven’t announced specific coins, but they are alluding to it.[1]

This means Coinbase could be adding more cryptocurrencies (a token is a cryptocurrency) to its exchange (GDAX) and broker service (Coinbase).

So what do I mean by “could be” adding more coins? I mean this:

  • The official Coinbase announcement says, “We’re excited to announce our intention to support the Ethereum ERC20 technical standard for Coinbase in the coming months. This paves the way for supporting ERC20 assets across Coinbase products in the future, though we aren’t announcing support for any specific assets or features at this time.”
  • The official Coinbase announcement does not imply they are for sure adding new tokens or even a specific token.
  • The official announcement does not imply a date on which new coins will be added if they are, but does say support will be ready “in the coming months.”

This is insanely good news from a long-term frame.

Coinbase/GDAX is a leading broker/exchange. If they are going to add an ERC20 token, then one might assume they are also going to add more altcoins. This is an assumption based on the fact that there are some top altcoins that fit Coinbase/GDAX standards better than some tokens. Thus it would make sense if the next addition is just a single ERC20 token, but a range of ERC20 tokens and alts.

I suggest trying not to simplify this news; it is what it is. Instead, read the Coinbase announcement carefully to get a full understanding of what could happen with Coinbase/GDAX in 2018 regarding new coin listings and ERC20 tokens.

Bottom line: Support for new coins is coming, but does this mean new coins for sure? No. Although new coins being listed seems likely, we still don’t know for sure.

What is an ERC20 token: An ERC20 token is a cryptocurrency created on the Ethereum network. ERC20 is just one token standard, but it is specifically a popular token standard on Ethereum.

FACT: Apparently new tokens will get added to GDAX first, so keep an eye on GDAX.

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