Is Ethereum Coming Back?

Written By Alexandra Perry

Posted April 22, 2018

The past week has been good for the digital currency world.

Ethereum and Bitcoin are taking off, with the rest of the market in hot pursuit. These rallies are arriving in the wake of huge market events, many of which took place while the market was in a slump, causing investors to turn a blind eye.

Today, I want to dig a bit deeper into one of these major market events.

It could potentially send the price of Ethereum and other digital assets skyrocketing.

But before we get to that, I want to say one thing…

Our Digital Currency Coverage Has Moved

You may have already noticed, but we’ve dialed back our Wealth Daily digital currency reporting over the last couple of months. 

Recently, a few readers reached out wondering why. We even had someone ask whether it was because the market crashed and we don’t want to beat a dead horse.

The reality is that we didn’t turn away from cryptocurrency. We doubled down on it because, quite frankly, it’s not a dead horse. 

To us, cryptocurrency has never been simply a fad. It is a whole new asset class, with quite a bit to offer both investors and our global economy.

Just think of it like this…

When the dot-com bubble crashed in 2001, many of today’s top tech companies were reduced to pocket change. You could have scooped up Amazon for under $20. Considering that stock is now worth over $1,500, it’s safe to say the technology sector has made quite a comeback.

It was with this mindset that we renewed our coverage of crypto. We created a whole new FREE digital currency e-letter, which we call Token Authority. This letter was built for you based on feedback we got over the course of 2017. You’ll get two mailings a week and all the educational resources you want.

It is, quite frankly, the door to a whole new market.

That said, I bring up this letter because while you are receiving a crypto Wealth Daily today, this will soon become a thing of the past.

We are slowing moving all crypto coverage over to Token Authority. So if you want to stay in the loop, make sure to sign up.

Now, with that out of the way, it’s time to move on to the market event I want to touch on: Coinbase’s planned support for ERC20 tokens.

Believe it or not, Coinbase building out support for ERC20 tokens will change the shape of the digital currency landscape forever.

It also could send the price of certain digital assets flying and bring a whole new wave of digital tokens to Coinbase…

Why Coinbase’s Plan to Support ERC20 Tokens Matters

Just three weeks ago, the world’s leading software wallet Coinbase announced that it would begin to build out ERC20 support.

In last year’s market conditions, this news would have sent the price of digital assets flying. In today’s market conditions, it was met with muted interest. Nothing really happened.

That said, don’t be fooled into thinking this isn’t a huge deal.

In fact, it may be the biggest digital currency news story in the last couple of months.

Without going into the technical details, Coinbase building out ERC20 support essentially means the GDAX and Coinbase platforms are starting to develop the framework they need to support tokens that are built on the Ethereum protocol on their exchanges.

Ethereum is a powerful platform used by web developers around the world to build something called decentralized applications. These decentralized applications often have their own tokens, meaning there are literally hundreds of Ethereum-based tokens floating around out there.

If you’re familiar with cryptocurrency, I bet you’ve heard of a few:

  1. OmiseGo
  2. VeChain
  3. Golem
  4. Storj
  5. TRON
  6. EOS
  7. Binance Coin
  8. RChain
  9. Status

This list goes on and on…

With Coinbase building out ERC20 support, any of these tokens could be the next on the platform.

Of course, that is speculation. Coinbase and GDAX both have rigorous testing in place to decide what tokens make the cut.

Still, it would be a major mistake to turn a blind eye to this announcement. We are at a pivotal stage of the cryptocurrency market. It is at this stage that certain technologies will start to die and others will rise.

With that in mind, Coinbase’s announcement means more than just more tokens for the exchanges.

It means a deeper acceptance of the Ethereum network and its long-term value.

After all, Coinbase is an industry leader, and the steps it takes will have a large influence on the rest of the community.

Other Market Implications for ERC20

Regardless of how you personally feel about Ethereum and its native digital currency ether, there is no doubt that Coinbase building out support for ERC20 tokens could majorly shake up the Ethereum world.

For starters, remember that Coinbase is currently the most popular digital currency exchange in the world. It is one of the only exchanges that accepts fiat currency, and in being so, it has attracted the bulk of digital currency investors.

That means any token on Coinbase will have more exposure to the market.

And this provides a lot of incentive for teams who are developing digital assets to work with the Ethereum network. If support for ERC20 tokens is already there, then it will be more likely that their assets will be on the platform.

And, historically, new assets on Coinbase tend to skyrocket in price.

Coinbase could also influence other players in the space, making investors more aware of ERC20 tokens or other exchanges far more open to them.

With that in mind, this announcement means more than just more tokens for Coinbase. It also means we just took a step toward more Ethereum-based applications.

And while it’s still too early to say anything definitive, this seems like very good news for Ethereum.

Unfortunately, at this point, I have to wrap up this editorial and send it over to our editors.

But if you’re interested in learning more about ERC20 and Coinbase’s potential new tokens, make sure to check out our premium digital currency trading service, Token Authority Pro. Our April issue broke down the ERC20 token development.

Sincerely,

alexandra-perry-signature

Alexandra Perry

follow basic@AlexandraPerryC on Twitter

Alexandra Perry is a contributing analyst for Wealth Daily and Energy and Capital. She has multiple years of experience working with startup companies, primarily focusing on artificial intelligence, cybersecurity, alternative energy, and biotech. Her take on investing is simple: a new age of investor can make monumental returns by investing in emerging industries and foundational startup ventures.

Angel Pub Investor Club Discord - Chat Now