Coinbase has just added another cryptocurrency under its belt – Ethereum Classic. Since today, users will already be able to trade and store ETC in Coinbase. The interesting thing to note, however, is why Coinbase decided to add that particular cryptocurrency to its products.
As CCN noted, ETC is currently well behind in market capitalization when compared to other, more “valuable” cryptocurrencies. So, given the fact that Coinbase holds only the most valuable digital currencies, like Bitcoin and Ethereum, there might be special reasons as to why the cryptocurrency wallet has chosen to add Ethereum Classic as the newest addition to its offerings.
According to the Vice President of Coinbase, the major reason why Coinbase chose ETC was that the cryptocurrency is compliant with crypto regulations and that the whole community was very excited to see ETC offered by Coinbase.
Given the rise of regulation on digital assets and the rise of “stablecoins”, Coinbase is taking a strategic move by adding ETC. This will allow the exchange to lay the grounds for a stable, well-constructed “portfolio” of “compliant” products that customers can choose from. While ETC may not be the top cryptocurrency by volume and popularity among the cryptocurrency community, the news that Coinbase is adding it to the platform was very well received.
Ethereum Classis is very similar to Ethereum in the sense that it is also a decentralized cryptocurrency, one that is not governed by a particular group of developers or institution. In addition, Ethereum Classic came out after a hard fork was performed on Ethereum.
The very “proximity” of ETC to Ethereum and the very nature of ETC’s structure and launch were pivotal in Coinbase’s decision to include the digital asset on its platform.
Coinbase also came out with a statement that they intend to keep building up their portfolio by adding new cryptocurrencies in the near future. For now, their priorities lie with supporting upcoming Bitcoin forks and complying with cryptocurrency regulations and local laws.