Sunday, February 5, 2023

Coinbase ERC20 Support Coming: What Tokens Have a Shot?

Coinbase ERC20 Support Coming: What Tokens Have a Shot?

Coinbase announced on March 26th that they would be adding support for “ERC20 assets across Coinbase products in the future.” The exchange declined to get into specifics for now, but the development bodes well for Ethereum-based tokens being listed on Coinbase and GDAX in the not-so-distant future. The grand question is, which ones will meet Coinbase’s asset guidelines?

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Coinbase: ‘Consistent with Our Process for Adding New Assets’

Brows across the cryptoverse were raised upon Coinbase’s ERC20 announcement. The fiat-to-crypto exchange was clear in saying “we aren’t announcing support for any specific assets or features at this time,” but speculation exploded in the space just the same.

For now, then, the exchange is considering adding ERC20 deposits and withdrawals to Coinbase Custody, its institutional cryptocurrency custodian service. Beyond that, GDAX will only add new tokens upon further “regulatory clarity,” and Coinbase will only add ERC20 assets once they’ve been listed on GDAX.

Such diplomatic phrasing gives the exchange the time they need to prepare for future listings, while denizens in the ecosystem are feverishly wondering what’s next.

And, while there are zero guarantees what “next” will be, if we put on our entirely speculative caps, there are a few projects that look best poised to be candidates for an eventual Coinbase listing.

Possible Candidate #1: Brave Attention Token (BAT)

Brave Attention Token, or BAT, seems to fit the GDAX Digital Asset Framework nicely.

BAT has a promising attempted use case (fixing online advertising), a reputable team (founded by JavaScript creator Brendan Eich), and Coinbase CEO Brian Armstrong has talked positively about BAT in the past and of its use case.

Armstrong talks up a BAT-like play.

Possible Candidate #2: 0x (ZRX)

0x, ticker symbol ZRX, is another token that seemingly has a reasonable shot at a Coinbase listing. For one, 0x seems to facilitate many of the values expressed in the GDAX Digital Asset Framework, such as:

  • Open financial markets
  • Technologies that solve problems or create value
  • Economic freedom
  • Equality of opportunity
  • Decentralization

0x is a decentralized commerce play, of course, that fosters on-chain settlement of off-chain order relays. What is interesting is that many of Coinbase’s OGs are now adivsors to 0x, including Fred Eshram (Co-Founder), Linda Xie (Product Manager), and Carlson Olaf-Wee (1st hired employee).

That reality may end up irrelevant. Or maybe not. But it’s surely a dynamic to keep an eye on.

Why Not OmiseGo and VeChain?

At present, many traders in the cryptoverse think OmiseGo (OMG) and VeChain (VEN) are the top-dog Ethereum tokens. So why aren’t they top candidates for an ERC20 Coinbase listing in this article?

It’s simple, really — both OMG and VEN are soon transitioning to their own native blockchains, i.e. away from Ethereum’s ERC20 token standard.

So it’s not that OMG or VEN wouldn’t ever get listed. It’s just that they probably won’t get listed as ERC20 tokens, depending on how various timelines shake out.

What’s your take? What tokens do you think may come to GDAX? Sound off in the comments below. 

Images via Imgur, Medium

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