Coinbase Wants To Pay Returns On Coin Spikes: Introducing “Staking”

coinbase wants

A new announcement is in the Coinbase news today, showing that one of the leading exchanges may roll out a feature which will include paid returns whenever a cryptocurrency token spikes on the markets. With this, Coinbase wants to pay returns to users in a feature known as “staking” that it hopes will convince users to stick around even when the prices are not spiking.

The feature wants to convince users to stick around even when the prices are not spiking. The new system also tells that if you hold particular cryptocurrencies in your Coinbase accounts, you will receive a set of returns that is independent of your market fluctuations.

Coinbase wants to roll out this feature and will likely start with the Tezos (XTZ) coins. The returns paid on the XTZ trading will start from 5% and will come in the form of crypto tokens that Coinbase receives for participating in the network which keeps the Tezos blockchain secure.

Very similar to how Bitcoin is distributed based on how much computing power is contributed to network, Tezos will also dole new coins based on how many coins each participant has “staked.” As analysts note in the cryptonews, this is basically interest paid to users.

However, Coinbase wants to introduce the term “staking rewards” which makes a distinction in terms of regulatory questions. Even though staking has become a common choice for newer coins, it is very unclear how the process is regulated in terms of investing rules. Because of concerns like these, staking was made available to wealthy investors in March this year – and is held back from the ordinary Coinbase users until now.

Aside from all the regulatory issues, Coinbase wants to develop staking as a new feature in the direction where the exchange will look more like a bank with its diverse revenue sources which they enjoy. These will include fees generated from serving as a custodian of assets and facilitating lending as well as consumer payments.

As an end note, Coinbase said that it is confident that the new Tezos staking feature is in good graces considering the SEC. However, the SEC is yet to respond for a comment and confirm if that is the case.

The post Coinbase Wants To Pay Returns On Coin Spikes: Introducing “Staking” appeared first on DC Forecasts - Leading Digital Currencies.

You might also like More from author

Comments are closed.