Exchange of cryptomoedas, Coinbase took another step towards the negotiation of ERC20 tokens by purchasing the decentralized Paradex platform. ERC20 is the technical standard for Ethereum in which most of the initial currency offer (ICO) tokens are based.
Paradex announced the news on its website today, May 23, 2018, adding that its site will be temporarily disabled while working to make integrations with Coinbase.
Paradex declares itself as a decentralized exchange (DEX), meaning that no third party is involved in withholding funds. Instead, users can use the platform to exchange ERC20 tokens directly from wallet to wallet. Paradex is built on the 0x protocol.
At the moment, Coinbase markets four currencies: bitcoin (BTC), bitcoin cash (BCH), ether (ETH) and litecoin (LTC). Adding ERC20 tokens could significantly increase the number of digital assets it supports. Due to the ICO boom that has occurred in recent years, thousands of different tokens are now available.
But since US regulators are in the midst of clarifying their position on virtual currencies, many exchanges are refraining from listing ICO tokens. In March 2018, the Securities and Exchange Commission issued a clear warning to virtual currency trading platforms that some ICO tokens may qualify as non-compliant securities, and any platform that lists security tokens must be registered as a national stock exchange or operate under an exemption and establish as an alternative trading system (ATS).
To that end, in April 2018, Coinbase entered into discussions with the SEC to take action to become an ATS. In a possible preparation for these plans, at the end of March 2018, Coinbase announced that it was adding support for ERC20 on all its trading platforms.
In a blog post, Coinbase CEO Brian Armstrong stated that Coinbase is initially planning to offer Paradex to customers outside the US and eventually to its US customers.
Coinbase offers two types of trading platforms: Coinbase for novice traders and GDAX for the most experienced traders. According to Reuters, Coinbase is revamping the GDAX and transferring it to a new service nicknamed "Coinbase Pro" next month.
Source: https://www.linguee.com.br/ingles-portugues/traducao/stage.html