The update states that users can now store, buy, and send Stellar’s cryptocurrency, the Stellar Lumen (XLM), on the Coinbase website, as well as on the Coinbase iOS and Android apps.
The publication underlines that the newly added cryptocurrency will be available for the majority of the customers, with the exception of Coinbase users in the United Kingdom or in the U.S. state of New York.
Last week, the company’s professional trading platform, Coinbase Pro, announced the start of accepting XLM deposits.
As Cointelegraph reported on March 17 in a market analysis, the price of the Stellar’s cryptocurrency XLM has risen sharply, making XLM the best performing major cryptocurrency of the past week.
Yesterday, IBM and Stellar jointly announced that six international banks have signed letter of intent to issue their own fiat-backed stablecoins on IBM’s cross-border payment network, which is based on Stellar.
At press time, XLM has gained around 5.66 percent on the day and is trading around $0.115, according to data from CoinMarketCap.
CoinMarketCap has added a new rating system providing insight into the growth and development of a cryptocurrency project.
Cryptocurrency market data platform CoinMarketCap has added a new metric to their site for measuring the fundamentals of cryptocurrency projects.
The new rating system dubbed the Fundamental Crypto Asset Score (FCAS) measures cryptocurrency projects “health” by considering user activity, developer behavior, and market maturity. Basically, the service provides insight into the growth and development of a project:
“We intake raw blockchain data across relevant projects and parse them internally. Once we clean, analyze, and recreate the raw data elements, we combine them with market data gathered from various sources to inform our models.”
User activity takes into consideration all customer behaviour for a specific cryptocurrency and comprises project utilization and network activity factors. The score is calculated by analyzing activity within a particular blockchain and labeling wallet addresses to determine the number of users, exchanges, contracts, and other types of participants.
Developer behavior indicates the level of activity and efficiency of a development community on a specific blockchain or project, and comprises such factors as code changes, code improvements, and community involvement. The benchmark tracks 30 variables to further explore the relations between traditional developer metrics and community activity.
The last criterion, market maturity, is sourced from risk and money supply factors. Generally, the metric represents the likelihood a crypto asset will provide consistent returns across various market scenarios by combining assessments of market risk and an analysis of the stability of the money supply of each tracked cryptocurrency.
The project is backed by such industry players as leading American cryptocurrency exchange Coinbase, incubator and venture capital firm Digital Currency Group, and Silicon Valley-based venture capital firm True Ventures, among others.
At press time, the scale of 1–1,000 health points shows that leading cryptocurrency Bitcoin (BTC) has a health of 885, behind Ethereum (ETH) with 909 health points. The third largest coin by market capitalization, Ripple (XRP) is sitting at the 751 points on the health scale at press time.
Per the announcement, the changes aim to increase liquidity, enhance price discovery and ensure smoother price movements. The changes include a new fee structure, reportedly designed to increase liquidity, updated order maximums, new order increment sizes, the turning off of stop market orders and added market order protection points.
According to the post, Coinbase Pro and Coinbase Prime — the firm’s institutional trading platform — will cease their support for stop market orders. The announcement further explains that all stop orders must now be submitted as limit orders and include a limit price.
On the other hand, the market protection points that will be introduced both to Coinbase Prime and Coinbase Pro users will amount to 10 percent for all market orders. The statement explains that market orders that move the price more than 10 percent will stop executing and return a partial fill.
Lastly, the post warns the exchange’s user base that the platform will be offline on March 22 from 6:00 p.m. to 6:30 p.m. PDT.
The changes were met with some skepticism and negativity from the crypto community on social media. Economist and trader Alex Krüger complained on Twitter about “Coinbase Pro raising fees for smaller clients by 33% while lowering fees for larger clients.” The same user also further commented that “in a rational world, most Coinbase users would now move to Binance.”
In the same Twitter thread, Krüger also questioned Coinbase’s decision to disable stop market orders, claiming that stop-limit orders sometimes fail to execute because of slippage, suggesting using far off limits on limit orders as a workaround. Still, Krüger also admitted that those changes should lead to increased liquidity and trading activity.
Another crypto trader on Twitter suggested that the new fee structure is seemingly targeting new users entering the cryptocurrency space, concluding:
“Pretty random day to hike all the fees up, Coinbase anticipating a new bull run perhaps?”
As Cointelegraph recently reported, Coinbase Pro announced support for altcoin Stellar Lumens (XLM).
Just yesterday news broke that publicly traded U.S.-based company Riot Blockchain has filed with the Securities and Exchanges Commission to launch a new regulated cryptocurrency exchange, called RiotX, in the U.S. by the end of Q2 2019.
CoinBase Pro is where you can start trading in minutes—that is what we get from their homepage. Previously known as GDAX, the professional trading wing of CoinBase, the exchange draws investors as well as individuals wishing to trade in a regulated and insured environment. Complementing the exchange’s deep liquidity is an intuitive, easy to use interface with “real-time order books, charting tools, data exporting, and no fee for maker trades.”
CoinBase Pro is Restructuring
In a bid to deepen liquidity, improve price discovery as well as smoothing price movement, CoinBase pro is restructuring and charging maker fees. These fees will help “to increase liquidity by reducing the delta between maker and taker fees” which will in turn have a cascading effect helping traders have better trading opportunities. Aside from introducing maker fees, the exchange will also remove stops on market orders, add market order protection points of 10 percent, introduce new tick sizes and update maximum order sizes to “protect customers from large price movements.”
“CoinBase Pro will implement a set of changes to further optimize the market health of our platform. These changes are designed to increase liquidity, enable better price discovery for trades, and to make price movements smoother.”
Going forward, traders posting limit orders will have to pay a 0.15 percent make fee for trade volumes below $100k. However, the percentage—like in all exchanges, will drop to zero as average monthly trade volumes increase. At the same time, ETC-USD, ETC-EUR, ETC-GBP, LTC-BTC, ETC-BTC tick sizes will decrease and the deprecation of stop market orders will start from Mar 22, 2019. To that end, the exchange will be offline from 6:00 pm PDT to 6:30 pm PDT on Mar 22 as these changes are effected.
Will CoinBase Pro Suffer?
As expected, users were not happy with the move. From a neutral point of view, this was a move necessitated by business demands. However, the 0.15 percent maker fees are lower when compared to Gemini—which is charging a massive one percent.
The decentralized nature of blockchains mean liquidity is a big obstacles. As a result, the argument is, the zero-fee maker fee model was attractive, encouraging customers to place limit orders boosting liquidity.
Besides, considering the number of CoinBase users, the exchange could still turn in a profit from taker fees which range from 0.05 percent to 0.25 percent down from 0.30 percent. The introduction of maker fees will therefore discourage participation, reducing liquidity in the process. Moreover, it is worse with the removal of stop orders.
Not many will be comfortable with open orders with no stops
on market trades. It is likely that customers will bail to other exchanges with
better offerings and liquidity as Liquid and Binance. At their peak in 2017,
Bittrex did the same thing, eliminating market orders and asserting for
liquidity creating limit orders and the result was catastrophic for the
exchange as liquidity tanked thanks to the mass migration.
According to an investigation conducted by TNW, 13 blockchain- and cryptocurrency-related companies were hit with a total of 43 vulnerability reports from Feb. 13–March 13.
In the blockchain field, e-sports gambling platform Unikrn reportedly got the most vulnerability reports, amounting to 12 bugs. Unikrn is followed by OmiseGo developer, Omise, having received six bug reports. In third place is EOS, with five vulnerability reports.
Consensus algorithm and peer-to-peer (P2P) networking protocol Tendermint received four bugs. Tendermint is followed by decentralized prediction market protocol Augur and smart contracts platform Tezos, with three each. Anonymity-focused cryptocurrency Monero, ICON, and MyEtherWallet reportedly saw two vulnerability reports each.
Major American crypto exchangeCoinbase and the developer of blockchain browser Brave, Brave Software, reportedly received one vulnerability report each.
The hackers received a total of $23,675 dollars for their efforts, of which Tendermint contributed the most at $8,500. EOS gave $5,500 in rewards, while Unikrn awarded $1,375. TNW says that the low bounty amount suggests that the bugs were not critical.
In contrast, tens of thousands of dollars in bounties were handed out by EOS to white hat hackers who found critical vulnerabilities in its platform.
This week, major hardware wallets manufacturer Ledger unveiled vulnerabilities in its direct competitor Trezor’s devices. Among other issues, the Trezor device could purportedly be imitated by backdooring the device with malware and then re-sealing it in its box by faking a tamper-proof sticker, which is reportedly easy to remove.
Trezor subsequently responded to the claims, stating that none of the weaknesses revealed by Ledger are critical for hardware wallets. According to Trezor, none of them can be exploited remotely, as the attacks described require “physical access to the device, specialized equipment, time, and technical expertise.”
Ripple’s long lost cousin, Stellar Lumens (XLM), has finally been added to Coinbase. In a blog announcement made just hours ago, the San Francisco-headquartered exchange revealed that it had added the crypto asset, one of the most popular tokens in the broader industry,
Starting today, members of the clientele of Coinbase Pro will be able to deposit their XLM coins onto the platform. The deposit period will last 12 hours starting March 13th at 1 PM PST.
Following the 12 hour period, Coinbase will assess whether there is enough liquidity/depth on its USD, EUR, and Bitcoin (BTC) pairs with XLM. The phases that XLM will be launched in are as follows:
Post-only — This phase will allow investors and clients of Pro to place limit orders for the XRP trading pairs. Order books will be in post-only mode for a minimum of one minute.
Limit-only — This is the final stage before full trading. This phase will see Coinbase’s trading engine matching limit orders, but not market orders. Order books will be in limit-only mode for a minimum of ten minutes.
Full Trading — In the final stage, full trading services will be available, including limit, market, and stop orders.
All users in Coinbase’s supported jurisdictions will be able to trade XLM, save for New York State, whose financial regulators still need to approve the asset’s addition.
It is expected that XLM support on Coinbase.com and the startup’s array of other products will be added within the coming weeks. But, considering that XRP was added to Coinbase.com just days after the Pro listing, users of the former may not be waiting for too long. That’s the hope anyway.
As of the time of writing, Lumens has found itself at $0.11, up 5% in the past 24 hours.
All this comes after XRP was added to Coinbase just a week or two ago.
A Monumental Week For Stellar
All this only underscores the monumental week that Stellar has had in terms of fundamental developments.
The project, heavily utilized by crypto-friendly technology giant IBM, underwent a full redesign last week. Stellar’s logo went from a cartoon-esque rocketship to a sleek, modern, abstract circle design that seems much more 21st century. Funnily enough, in an announcement from the Stellar Development Foundation, founded by Ripple and Mt.Gox creator Jed McCaleb, it was explained that a “cartoon” logo just didn’t make sense for use in formal banking systems, known for its suits.
Crypto startup SatoshiPay has recently revealed that it has partnered with German media outlet Börsenmedien. This business deal will purportedly see the companies harness a Stellar-based solution, which will transfers payments from readers/viewers to the portal.
Per the post, Coinbase Pro will now accept deposits of XLM for around 12 hours before enabling full trading. Coinbase notes that after establishing sufficient supply of XLM, it will open trading pairs in U.S. dollars, euro and Bitcoin (BTC) in phases.
XLM trading will go through three stages before enabling full trading, including limit, market and stop orders. The stages involve “transfer-only,” “post-only,” and “limit-only.” The first two stages will allow users to transfer XLM to Coinbase Pro accounts and post limit orders, while the subsequent one will enable customers to match limit orders.
XLM trading will be initially available for customers in Coinbase’s supported jurisdictions, expect the state of New York. Coinbase may add additional jurisdictions at a later time.
Last month, Coinbase Pro added support for Ripple (XRP), that joined already listed Ethereum Classic (ETC), Basic Attention Token (BAT) and privacy oriented altcoin Zcash (ZEC). In the past, these tokens were added to Coinbase Pro, before support for them was eventually extended to Coinbase.com and its apps for Android and iOS.
The recent addition of XRP to Coinbase was long-awaited by the crypto community. The coin reacted promptly to the news about its listing on Coinbase Pro, turning out to be one of the biggest winners on that day.
However, a report by blockchain research firm Diar stated that XRP breaks one of Coinbase’s requirements to be listed on the platform. In its “Digital Asset Framework,” Coinbase stipulates that “the ownership stake [in a token] retained by the team is a minority stake,” while, according to Diar, Ripple holds around 60 percent of the supply in escrow with a release schedule.
At press time, XLM has gained around 3.94 percent on the day and is trading around $0.108, according to data from CoinMarketCap.
The post reveals that Coinbase Custody is now directly integrated with Coinbase’s OTC desk, which enables customers to use the OTC desk to price and confirm trades prior to moving funds.
The product purportedly provides easy and immediate liquidity on users’ offline funds, meaning that it now takes less time for Custody users to get access to their funds and avoid the waiting period to access them.
In February, co-founder and CEO of Coinbase Brian Armstrong outlined what he believes to be four common misconceptions about crypto custody solutions. Armstrong’s arguments tackled the perception that hot storage is always necessary to provide the flexibility and speed required to execute trades.
Armstrong noted that participating in a Proof-of-Stake (PoS) network and earning returns on staked coins does not necessarily imply the latter need to be stored in a hot wallet. He also disentangled the relationship between single-key holders and whether storage is hot or cold, and mentioned hardware security modules, arguing that they can come close to the security of cold storage.
Coinbase launched OTC trading last November. At the time, Christine Sandler, head of sales at Coinbase, pointed out an increased demand for OTC crypto trading from institutional players. Sandler said the availability of both exchange and OTC business was a “huge benefit” to their customers.
Sandler then revealed that the OTC service was likely to be combined with Coinbase Custody at a later date.
Yesterday, Cointelegraph reported that Coinbase introduced a service to link users’ accounts on its main platform to its Coinbase Wallet app, allowing quicker transfers from the main account to the wallet. In future, the company plans to allow customers to send crypto back to their main account from the wallet.