Coinbase Custody and IOHK Partner to Provide Institutional-Grade Staking For Cardano’s ADA in Q4

IOHK, the lead developer of Cardano blockchain, and Coinbase Custody, the institutional-grade custodian launched by Coinbase Inc., announced a partnership to allow users to stake their ADA tokens. Along with staking, the partnership also allows assets to remain safely locked in a cold storage wallet.

In the announcement emailed to us on Friday, the staking-custody service offered by Coinbase, a first of its kind, will be rolled out in the latter stages of the year when the staking service on Cardano blockchain goes live.

This service will ensure that users of ADA on Coinbase will be able to reap the rewards on Cardano’s proof-of-stake (PoS) network while keeping the digital assets secure in the cold wallet storage facilities. The statement reads:

“Agreements like these are essential to driving widespread adoption of cryptocurrencies, as they allow institutional and large investors to safely and securely manage their funds while also keeping in line with regulatory requirements.”

This is also expected to sway the regulators’ view on the use of cryptocurrencies without the worry of a security breach, which previously provided a barrier to digital assets being widely adopted.

Speaking on the partnership with IOHK, Sam McIngvale, Head of Product, Coinbase Custody, said the exchange tested the Cardano staking testnet protocol with over a thousand stake pools sampled. Sam concluded,

“We are pleased to have been selected as the custodian, and we’re proud to be a full-service, regulated, comprehensively-insured, and 100% offline staking provider in crypto.”

Cardano’s founder and CEO at IOHK, Charles Hoskinson, was equally pleased with the partnership stating the aim is to include the unbanked population and provide a gateway to financial investments to people who have previously were neglected. On the custody- staking services, Hoskinson said:

“This custody agreement allows us to offer the same secure storage solutions that can be found in traditional finance to ADA holders, without sacrificing what makes Proof of Stake blockchains special – being able to participate in the network.”

Cardano’s native token, ADA, is on a sustained rise since the announcement of the launch of the Shelley-era in the coming weeks. IOHK has already deployed the Shelley node on the Cardano mainnet, signaling everything is ready for the hard fork.

The token currently places seventh on Coinmarketcap charts with a total market capitalization of $2.6 billion after an 8 percent surge in price the past 24 hours.

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Author: Lujan Odera

Circle and Coinbase’s USDC Becomes Second Stablecoin to Hit 1 Billion Circulating Supply

USDC, the dollar-pegged stablecoin launched by Circle and Coinbase back in October 2018, has become the second stablecoin to see its circulating supply surpass the 1 billion mark after Tether’s USDT.

USDT maintains a commanding lead within the stablecoin market with its total market cap exceeding $10 billion on June 30, only behind Bitcoin and Ethereum. This also makes USDC the 18th cryptocurrency in the decentralized space to have a 10-digit circulating supply.

The cryptocurrency market has seen a surprising uptick in demand for stablecoins like USDT and USDC, especially after the Black Thursday crash of the crypto space, which saw the value of Bitcoin and almost every other altcoin fall by over 50%.

The volatile nature of cryptocurrencies has made investors seek out stable assets to hedge their risk in troubled times. Thus the demand and use of stable coins have grown significantly.

Joao Reginatto, director of product manager at Circle, took to Twitter to announce the $1 billion circulating supply for USDC.

The Stablecoin Market Dominated by Tether

Stablecoins were invented to help provide easy on-boarding for investors, as in the beginning, and even now, many countries do not allow for direct purchase of crypto via fiat. Consequently, stablecoins have been in high demand since the advent of crypto exchanges. However, now it has become an integral part of the ecosystem, and people are also using it to hedge their risk.

With several stable coins available in the market including USDT, USDC, Paxos Standard (PAX) and TrueUSD (TUSD), Gemini Dollar (GUSD), and many more, a majority of the market is captured by USDT itself, where it enjoyed a market dominance of over 90% followed by USDC with near 3%-5%. The remaining stable coins control a fraction of the available market.

Source: Skew

A recent study from Skew suggests that USDT’s dominance is no more limited just to spot markets, and USDT-margined derivatives contracts are emerging and could gradually replace coin-margined contracts over the next year.

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Author: James W

Coinbase Open-Sources ‘Rosetta’ Used to Integrate New Blockchains For Listing

Coinbase is going open source and has launched Rosetta that will make integrating with blockchain simpler, faster, and more reliable.

“At Coinbase, we believe a thriving and open ecosystem is necessary for the promise of crypto to be realized, ultimately leading to our vision of more economic freedom for the world,” announced the US-based cryptocurrency exchange.

Back in 2016, the company thought of going open source, and it was only last year that they outlined its strategy. And now, it has launched Rosetta.

Rosetta was initially developed as the middleware to integrate blockchains into its platform securely, which they have now finally released.

The goal here is to standardize “how to interact with blockchains.” Making it easy for anyone to build on top of a blockchain for a variety of use cases, given that the number of blockchains has grown dramatically.

This interface will make it easier for developers of new blockchain projects to ensure compatibility with exchanges that use Rosetta, the company said. Besides speeding up the time of integration, it will protect customer funds by ensuring specific security conditions are met.

As for the broader community of crypto developers, it will help them in building cross-blockchain applications such as wallets, dapps, and block explorers. Coinbase said,

“Rosetta enables blockchain projects to 1) onboard faster with exchanges and apps; 2) build while ensuring strict security constraints are met, and 3) grow adoption by making code predictable & easier to debug.”

Currently, the framework is open-sourced to projects that are looking to get their tokens listed on the exchange. Coinbase’s goal is to decrease the time spent in bringing a blockchain onto the exchange.

Currently, there are a number of projects using this open-source software; Filecoin, Celo, Near, Oasis, Coda, Ontology, Kadena, Handshake, Blockstack, and Sia.

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Author: AnTy

Coinbase Pro Adds Support For DeFi Project Compound’s Governance Token, COMP

Major US-based crypto exchange Coinbase Pro has stated it is now supporting COMP which is the token that is powering Compound, the decentralized lending protocol.

In a press statement released on Thursday, Coinbase clarified that trading for the COMP token will kick off on June 23 but will depend on whether the set liquidity standards are met. Also, users will be allowed to deposit COMP on June 22.

According to Coinbase, after enough supply of COMP has been attained within the platform, COMP-USD, as well as COMP-BTC order books, will commence in phases, starting with post-only mode then going on to full trading when the requisite metrics are met.

The compound is Ethereum-based decentralized finance (DeFi) platform that enables its users to borrow tokens as well as deposit them to earn or pay interest. COMP is the token which governs the Compound platform.

Currently, Compound is ranked as the second most commonly used DeFi protocol, and $276 million worth of crypto is at the moment being used within the protocol.

COMP token was launched on June 15 and has so far amassed about $1.1 billion in market cap which essentially makes it the most valuable DeFi token within a week after introduction.

Coinbase clarified that the token is not yet available in its main consumer platform. However, most of the tokens are launched in Coinbase’s consumer platform after being introduced on Coinbase Pro.

Coinbase also revealed that it holds an unspecified amount of COMP tokens after investing in Compound back in 2018. The exchange also clarified it has no intention of dumping its stash of tokens soon.

Coinbase stated that the listing of COMP tokens on its Pro platform was in line with its commitment to provide a wide array of assets for trading within its platform. The exchange also stated that plans are underway to support other assets that will meet its listing process.

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Author: Joseph Kibe

#DeleteCoinbase Trending After the Coinbase Exchange’s Deal with DEA & IRS Becomes Public

Cryptocurrency exchange Coinbase intends to sell its blockchain analytics software called Coinbase Analytics to two US government agencies.

As per the public records, the Internal Revenue Service (IRS) and the US Drug Enforcement Administration (DEA) are planning to buy the license from Coinbase. The software will provide “identity attribution” for cryptocurrency addresses both domestically and internationally, as per the documents issued in April and May, as per The Block.

Coinbase maintains that the tool only offers the agencies access to publicly-available data and not any internal or customer data. The company uses the product internally for compliance and global investigations.

Coinbase Analytics was developed with the help of Neutrino, a blockchain startup the exchange bought for $13.5 million last year. The acquisition was criticized due to Neutrino founders’ involvement in Italian spyware Hacking Team.

A month after that, Coinbase CEO Brian Armstrong said it would part ways with those associated with the Hacking Team. But then its sales chief announced Coinbase’s previous analytics partner Elliptic sold the customer data which Elliptic denied.

The Details

Coinbase’s contract with DEA involves the “period of performance” from April 3, 2020, to April 2, 2021.

“The least expensive tool on the market and has the most features for the money,” and could help Coinbase make from $10,000 to $250,000. According to the DEA contract, Coinbase Analytics,

“provides investigators with identity attribution and de-anonymities virtual currency addresses domestically and internationally. CA is known for its accuracy of attribution which includes some of the most conservative heuristics used in commercial blockchain tracing tools. This is critical in avoiding false positive during target identification.”

Meanwhile, the IRS contract states this tool can assist in tracking not just bitcoin but various types of cryptos.

Specifically mentioning Neutrino, it says the tool will allow the agency in analysing and,

“tracking crypto flows across multiple blockchains that criminals are currently using.”

“Coinbase Analytics also provides some enhanced law enforcement sensitive capabilities that are not currently found in other tools on the market.”

Its period of performance is one base year from the date of award with 12-month option.

Backlash from Crypto Community

“This is no surprise, our distrust in you is strengthened, we will make your analytics software obsolete,” tweeted Jameson Lopp, co-founder, and CTO of Casa.

Blockstream CSO said, “If there was ever an executive order to confiscate your Bitcoin, I’d wager Coinbase would be first in line to comply.”

The news had the crypto community angered at Coinbase yet again. After the news broke out, Bitcoin has started moving out from Coinbase.

The ‘DeleteCoinbase’ hashtag is also picking up and is gaining strength.

This, however, isn’t the first time that Coinbase is facing criticism. Back in 2018, the exchange suspended WikiLeaks’ Coinbase account which was when the #DeleteCoinbase movement started.

Already, the exchange has been having outage issues, it has been constantly going down whenever bitcoin rallies, even as small as 5% BTC moves.

Most recently Black Swan author also closed his Coinbase account after the exchange didn’t provide customer support.

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Author: AnTy

Black Swan Author and Bitcoin Supporter Nassim Nicholas Taleb Closes his Coinbase Account

  • Coinbase users are getting fed up with it and the exchange continues to irk its users by refusing to do better.
  • The US-based cryptocurrency exchange already has been struggling with connective tissues during a period of volatility in the bitcoin market.

In 2020, so far, Coinbase has gone offline several times, the most recent one was the first day of June.

“It’s 2020 and coinbase still goes offline with a 5% Bitcoin move. Meanwhile, they’re the ones holding almost 1 million BTC,” said WhalePanda.

Besides these network issues, Coinbase isn’t helping out its customers either.

Coinbase users calling out the company’s lack of support isn’t anything new but this time, it ended up costing them big.

Nassim Nicholas Taleb, the author of 2007’s “The Black Swan: The Impact of the Highly Improbable” and “Fooled By Randomness” took to Twitter on June 5 to share his displeasure with the exchange.

“@Coinbase What is going on with you? Why don’t you respond to errors?,” called out Taleb adding “Even their account closing page is messed up. Does not respond.”

This initiated a response from the exchange that apologized for the delay and said they’ll be following up “shortly” to his support case.

Coinbase was quick to respond but it was already too late for Talib who replied with, “Too late. Closing account.”

In a separate tweet, Taleb shared that he has been a Coinbase customer for a few months now.

With Coinbase out, other cryptocurrency exchanges took this opportunity to shill their exchanges with Kraken co-founder and CEO Jesse Powell asking Taleb to check out Kraken and “contact me directly if you have any problems.”

Taleb might have quit Coinbase but he isn’t quitting crypto and has been a staunch supporter of them for some time now.

Recently, he advised to “use cryptocurrencies,” after a user posted that the central bank of Lebanon is confiscating all the foreign currency remittances and forcing the money counters to pay their value in their local currency Lira.

Back in 2018, he had said “bitcoin is an excellent idea,” because “it fulfills the needs of the complex system,” and has no owner and no authority and even has a huge advantage over gold in transactions.

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Author: AnTy

Coinbase, Who Controls Over 11% of Tezos, Rolls Out XTZ Staking in UK and 3 EU Countries

Over 6 months back, Coinbase launched Tezos staking for its US customers and now they are rolling this feature out for its users in the UK and other EU member countries including France, Spain, and The Netherlands.

“With yields on savings accounts and government bonds at record lows — and in many cases negative — in the UK and across Europe, staking offers our customers a simple way to earn rewards on assets,” said Rhea Kaw, Product Manager.

In its official announcement, Coinbase pitched that staking Tezos on your own or via a delegated staking service can be confusing, complicated, and even risky.

This is where Coinbase comes in, which allows its users to have an estimated annual return of 5% with an initial holding period of 35-40 days.

In comparison, Binance offers a 6.12% return, OKEx 6.32%, KuCoin 5.49%, Kraken 5.37%, and Gate.io 4.23%, as per StakingRewards.

Coinbase stakes Tezos on behalf of its customers and since the US launch of staking rewards, its customers have earned more than $2 million in Tezos staking rewards.

The US-based exchange currently controls over 11% of the Tezos network consensus with 74.4 million XTZ staked at Coinbase. The amount of XTZ staked on it grew +13% month-over-month (+8.2M tez) in May.

In May, the amount of Tezos staked reached a new all-time high of 80.1% of its all circulating supply. A spike in staking means the staking yield has fallen to its all-time low of 0.94%.

The tenth-largest cryptocurrency by market cap, Tezos is currently trading $2.86, up over 6.20%. In 2020, so far, the digital asset has recorded returns of +115%.

Since Tezos staking was first launched on Coinbase, the digital asset has spiked over 200% in value.

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Author: AnTy

Maker (MKR) is the Latest Crypto Pumping on Coinbase Pro Listing Announcement

Last week, OmiseGo (OMG) saw the “Coinbase Effect” after the US-based cryptocurrency exchange announced its listing. Following the support, they even airdropped OMG to users who didn’t receive the tokens in 2017.

This week the latest cryptocurrency to enjoy this effect is Maker (MKR).

Today, Coinbase Pro announced the launch of Maker and the digital currency has already soared over 35% to $465. In 2020, so far, MKR has recorded negative returns of 7.42%.

Maker is supported on Coinbase Pro and starting Monday, June 8, it will start accepting inbound transfers of MKR. Trading will begin for MKR/USD and MKR/BTC 9 AM Pacific Time (PT) the following day but only “if liquidity conditions are met.”

This isn’t the first time Coinbase has launched support for Maker. Back in April 2019, Coinbase Pro added support for MKR along with EOS (EOS) and Augur (REP) but “due to limited liquidity,” trading for the cryptocurrency couldn’t proceed.

The 26th largest cryptocurrency will now be once again available in all Coinbase supported jurisdictions except for New York.

The ERC20 token is a utility and governance token of the Maker system that manages another ERC20 token, the DAI stablecoins.

Back in June 2019, Coinbase also added DAI as the first stablecoin to its Earn Program which joined EOS, XLM, ZEC, BAT, and ZRX.

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Author: AnTy

Coinbase Custody Adds Cosmos (ATOM) Staking; Joining Tezos (XTZ) and Algorand (ALGO)

Coinbase Custody, a custodian independent entity launched by Coinbase Crypto exchange primarily focused on offering custody and staking service has added Cosmos (Atom) staking services for its clients.

Coinbase Custody was among the first to offer safe, offline staking services, for Proof-of-Stake (PoS) based tokens, allowing its clients to earn staking rewards and participate in on-chain governance process without risking their funds. The announcement was made through an official blog on May 21st.

Cosmos is also a proof-of-stake based blockchain known to offer interoperability between different blockchains. Clients can stake their Cosmos tokens to a validator and in return share the block rewards. Prior to Cosmos staking, Coinbase Custody was already offering staking services for Tezos and Algorand. [Also available on Binance.us and Anchorage]

With the addition of Cosmos, clients would now be able to login to their Coinbase Custody account and stake as much of the Cosmos asset they want. The client would also have the option to chose the delegator either in the form of Coinbase Custody or choose a third-party validator.

How Coinbase Custody Staking is Different From the Rest of The Market?

Coinbase custody makes use of secure offline cold wallets instead of the usual hot wallets, which are used by a majority of the firms offering staking service. Hot wallets are prone to hacking attacks that place the client’s assets at risk of being stolen. Whereas Coinbase Custody offers all its staking services via offline secure wallets.

Coinbase Custody believes its vast experience in offering Tezos staking service makes it one of the most experienced and secure staking service provider. Coinbase’s support of Tezos also makes it the biggest validator of Tezos and, coupled with its clean record on security and losses of funds, makes it a reputable solution.

Bryce Ferguson, Product Manager, Coinbase Custody also promised that in case if there is any lapse on their side and slashing takes place, they would cover all the risk and the client would not have to worry about any kind of loss of their asset. Ferguson said:

“Although slashing is unlikely, we want our clients to feel comfortable that in choosing our Cosmos staking service they are choosing an option that aims to mitigate risk.”

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Author: Silvia A

Securitize Launches ‘Instant Access’ P2P Trading Service For Private Investors

  • The Coinbase, Sony, MUFG, and Santander-backed project, Securitize, launches ‘Instant Access’
  • A project aiming to open up and ease trading digitized assets in a peer-to-peer network.

Securitize, a tokenization firm launched a service that allows users an easy and secure gateway to instantaneously trade digitized assets through a web-link. The peer-to-peer gateway offers KYC/AML compliant users a direct way to purchase and sell cryptocurrencies and digitized assets in a bid to boost adoption rates.

The new platform is highly touted as a solution to the “counterparty risk” synonymous with centralized crypto exchanges. According to the released report, Instant Access aims to open up a convenient and regulation-compliant gateway for users to exchange tokenized assets over a web-link.

According to a spokesperson from Securitize, the new platform is expected to provide investors in private tokenized assets to securely exchange their assets. The spokesperson further said,

“What has typically been a very burdensome and time-consuming process (trading private securities) can now be completed compliantly in seconds with no fees other than the “gas costs” associated with the Ethereum blockchain.”

The new platform came to be through collaboration with the Airswap team, an Ethereum-based project. Airswap was part of the team that facilitated the registration of Securitize as the first-ever U.S compliant tokenization platform.

So how can you trade directly on a web link?

Instant Access is built to transact the exchanges off-chain – reducing the waiting time and ensuring the security of the assets from hacking. Users communicate on an off-chain platform in the following way;

If you are a seller you need to send a web-link to prospective buyers through messages on social media, text, or email. Once the buyers receive the message, if they wish to buy, they click the link and follow through the steps provided. Once the buyer initiates the exchange, the funds and assets are transferred almost instantaneously.

The tokenization market is steadily growing and recently Securitize announced a partnership with Jan-based firm, LIFULL, to tokenize the rural Japanese real estate market.

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Author: Lujan Odera