Coinbase News Causes Surge In The Price Of Ethereum Classic By More Than 20 Percent
The price of Ethereum Classic (ETC) has taken an upward turn after cryptocurrency exchange Coinbase announced that it plans to add the digital coin on its platform in the next few months.
The announcement was made through a blog post on Tuesday by Coinbase, revealing that engineers have been working towards integrating Ethereum Classic into the exchange platform. The U.S-based cryptocurrency exchange also stated that it will reveal the actual launch date for the cryptocurrency on the platform on September 5.
The move echoes a previous announcement by the exchange in March in which it revealed that it plans to introduce new assets onto its platform. The company stated at the time that it was internal asset committee had been assessing different assets using its Digital Asset Framework but the team had not made any recommendations at the time. However, it seems that the committee has finally settled on Ethereum Classic as the next addition to its cryptocurrency portfolio.
Coinbase has also been criticized for deciding to select its assets randomly. The announcement seems to have caused positive sentiments, leading to a bearish turnaround for Ethereum Classic amid declining cryptocurrency prices. For example, the price of Bitcoin (BTC) dropped significantly at the start of this week after reports about a hack on a cryptocurrency exchange.
Coinbase’s current portfolio currently includes Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Coinbase has been rather slow towards bringing new digital currencies on board, perhaps as a precaution. For example, the digital currencies mentioned above are among the top cryptocurrencies with significant trading volume. Limiting the number of cryptocurrencies traded on the platform or carefully selecting the assets available on the exchange makes it safer for traders.
The addition of Ethereum Classic to the carefully selected portfolio of digital currencies on Coinbase marks a significant step for the exchange and also for traders. An expanded portfolio means traders who use the platform will have access to more opportunities.
“As part of this process, customers can expect to see public-facing APIs and other signs that the asset is being added. When we reach the final testing phase of the technical integration, which we expect to occur over the next few months, we will publicly announce a launch date for trading via our blog and Twitter (Step 5),” stated Coinbase.
Coinbase also announced that it has taken measures to prevent insiders from taking advantage of early news to trade. Those who were aware of the plans to launch Ethereum Classic before the actual launch were prevented from trading.