Coinbase Raises Purchase Limit
In this week’s digital currency update, we’re going to take a look at a few major updates from Coinbase.
The company made big strides this week, releasing Ethereum Classic (ETC) on its professional exchange, Coinbase Pro. Beyond that, the exchange delighted its users by raising its buy and sell limit.
After we look at those events, we're going to take a look at Overstock's new blockchain platform and its security token sale.
Coinbase Boosts Crypto Buying Limit
In news that should thrill investors everywhere, digital currency exchange Coinbase announced that it would be increasing the daily purchase limits on its platform. The purchase limits are being increased to $25,000.
The company also announced that it would be allowing individuals to make “instant” trades right after direct deposits from bank accounts.
Currently, users of the platform have to wait five days for these kinds of funds to be available in their Coinbase accounts. This has caused complaints from users in the past who may have missed out on a dramatic price move because of lack of funds. Coinbase users have always been able to buy instantly after transferring through their debit cards or wire transfers.
It's worth noting that only customers who have completed Coinbase site identity verification process will have access to these changes.
U.S.-based customers will have access to these changes immediately, and Coinbase is still working on extending these changes to other international customers.
Regarding the announcement, a Coinbase representative stated, “These improvements are built on our [six]-year history of focusing entirely on cryptocurrency and building the most trusted, compliant cryptocurrency exchange in the world.”
Ethereum Classic Arrives on GDAX and Robinhood, Initiating a Three-Month High
On August 7th, Ethereum Classic arrived on Coinbase Pro, Coinbase’s professional digital currency trading platform. Investors can both buy and sell the token.
Prior to its Coinbase Pro debut, Ethereum Classic also launched for trading on U.S. brokerage Robinhood’s crypto platform on August 6th. All of this attention has sent the price of Ethereum Classic flying.
At the time of writing, the digital token was trading for around $18. The token went all the way up to $19 before retreating from that three-month high.
Ethereum Classic is most famously known as the first Ethereum, designating the original Ethereum blockchain after a hard fork back in 2016. While no official date has been announced yet, it is also expected that Ethereum Classic will soon arrive on Coinbase’s main trading platform, joining Bitcoin Cash, Ethereum, Bitcoin, and Litecoin.
If you would like to learn more about Ethereum Classic, make sure to check out our Ethereum Classic educational page.
Overstock Closes tZero's Token Sale
tZero, a blockchain subsidiary of e-commerce giant Overstock.com, officially ended its security token offering (STO) on August 6, 2018. The startup stated that it would reveal the total amount raised through the offering on August 9th.
tZero's security token offering went on for a period of weeks, with multiple extensions. Investors were able to invest in the platform through aptly named tZero tokens.
In the beginning, the company actually started raising funds through an initial coin offering, collecting over $100 million in funds in December 2017. This didn't last long, however, with the company revising its offering to a security token offering when it came under scrutiny from the SEC.
As of February 22, 2018, the company reported that it had raised $49 million of the $300 million offering.
But what exactly is this grand tZero platform? That's a great question.
The company behind tZero positions the distributed ledger system as a new alternative trading system (ATS) that will improve token trading for everyone. In order to build the platform, the team coupled blockchain technology with older market processes.
In doing this, the team at tZero hopes to reduce settlement times and costs and increase transparency and audibility. The tZero platform advertises that it will have encrypted accounts for all of its users, post-trade servicing, and a distributed ledger.
The long-term goal for the platform is to get additional firms to list themselves on the platform. In theory, the next wave of IPOs could launch on the tZero platform, making security tokens far more accessible to investors.
The “Billion-Dollar” Bitcoin ETF Question
It's the question on every digital currency investor's lips: “When is the first digital currency ETF finally going to happen?”
It's a good question. As we spotlighted in our Monday article, a digital currency ETF would dramatically change the digital currency market.
It would throw open the doors to new investors by allowing them to access digital currencies without going onto digital currency exchanges. It would also allow investors to hold a wide range of assets, protecting them from volatility and reducing the amount of maintenance time usually required to manage multiple digital currency accounts.
Yet, despite all those benefits, a digital currency ETF is still just out of sight.
Last week, the digital currency community faced a setback when the SEC rejected the Winklevoss twins’ Bitcoin ETF in a vote of 3–1.
Now investors are waiting on the next Bitcoin ETF in the wings: the VanEck-SolidX Bitcoin ETF.
VanEck is a New York-based investment management firm. Earlier this week, Gabor Gubacs, VanEck's director of digital asset strategy, said he wished he “knew the answer to the $1 billion question” when referring to the world's first Bitcoin ETF.
On August 7th, the SEC announced that it had delayed its decision on the VanEck Bitcoin ETF, leaving investors to hope that good news is coming down the pike. In its announcement, the SEC said it needed more time to deliberate on the ETF.
Its decision is now expected to come on September 30th.
And considering all that is at stake, investors will likely spend all of next month on the edge of their seats.
That's all we have for digital currency updates this week. Make sure to keep an eye out for our Monday Token Authority article, and email us with any questions.