One of the most important virtual currency platforms in the world, Coinbase acquired Paradex, a decentralized platform that allows users to buy and sell cryptocurrencies between each other.
Coinbase Acquires Paradex
The information has been reported by Reuters on Wednesday May the 23rd. Coinbase’s main intention is to enhance the platform and launch its services to customers all over the world, and not jus the U.S. This would let them trade ‘hundreds of tokens.’ At press time, the financial terms of the deal were not disclosed.
“After making some product enhancements, we’ll initially offer this experience to customers outside the U.S., and eventually to U.S. customers after implement changes for compliance purposes,” said Coinbase in a statement.
The main advantage of a decentralized exchange is that there is no third party involved while exchanging virtual currencies. Users do not need to trust a server hat would hold their tokens and that can be hacked at any moment. Instead, traders are able to exchange their cryptocurrencies through their digital wallets.
This would allow Coinbase to offer more virtual currencies than the 4 that it has been offering since 2017: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).
Currently, the price of the 0x token, which can be used in the decentralized exchange, has skyrocketed 23% in the last 23 hours, according to CoinMarketCap. Each ZRX token is now available for $1.31 dollars and it’s the 31st most important virtual currency in the market.
Coinbase announced the last week that it launched Coinbase Custody, a new platform that allows institutional investors trade virtual currencies. At the same time, at the beginning of the year, Coinbase had a meeting with U.S. regulators so as to obtain a banking license. About that, there have been man crypto enthusiasts complaining that Coinbase plays the game of the banks.
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