Coinbase is on a path of adding as many crypto assets as possible.
It’s a Crypto Exchange; What Do You Want?
This shouldn’t come as a surprise. Most crypto exchanges are in direct competition with each other. Thus, having a digital coin not listed elsewhere is likely to garner more customers and business along the way, but not everyone appears to be happy about the news.
VC investor Arianna Simpson took to social media to clarify the situation and respond to the haters, writing:
“I find it amusing that people are so up in arms about Coinbase listing more assets. 1. What did you expect, they’re an exchange. 2. It’s odd to be in favor of an open financial system, as most crypto people claim, and then basically want parental consent to screen what you buy.”
What is Crypto’s Purpose?
The purpose of bitcoin and other digital assets is to grant customers financial independence. In third-world or developing countries, for example, financial systems are typically harder to control or build due to corruption amongst high-ranking officials, poor economies or lagging infrastructures. Many people in these regions likely do not have access to credit or other monetary means that citizens in developed countries take for granted.
Bitcoin and its crypto-cousins grant people access to cash without having to go through a traditional institution. Coinbase commented that the driving force behind adding further cryptocurrencies to its trading platform was its customers’ wishes:
“Our recent shift in strategy is really driven by customers. When we asked customers the number one thing they want, they told us it’s adding new cryptocurrencies to the platform… With a traditional stock exchange, they list everything above a certain quality bar, and ultimately investors and individuals make decisions on what to invest.”
A Hidden Motive?
Coinbase appears to be applying a similar strategy, only instead of traditional stocks, they’re listing cryptocurrencies. By providing further options, customers can now explore which assets meet their needs the most and make investing decisions from there.
However, one user responding to Simpson’s message comments that one of the “hidden” reasons behind the addition of further coins may be because bitcoin’s recent death streak is putting altcoins at the front of the line. If bitcoin continues to experience further drops and becomes less-dominant, consumers will likely desire a few alternatives.
Among the most recent tokens to be added to Coinbase or Coinbase Pro include Basic Attention Token (BAT) and Zcash (ZEC).
Will Coinbase add even more coins down the line? Post your comments below.
Image courtesy of Shuttershock
