Cryptocurrency exchanges are the gatekeepers of the industry. Most platforms increase their range of supported currencies. In the case of UK’s Coinfloor, the focus will shift solely to Bitcoin, the world’s leading cryptocurrency.
Coinfloor Drops Altcoins
With over 6,000 different cryptocurrencies, tokens, and altcoins in circulation, running a crypto trading platform has become more complicated. It is crucial for such companies to expose customers to different assets. Diversification is crucial in any financial sector.
Coinfloor, the UK’s oldest Bitcoin exchange, takes a contrarian approach. Instead of supporting more assets, the team is cutting down. Support for both bitcoin cash and ethereum will come to an end in January 2020.
From that point forward, the trading platform supports bitcoin only. It appears the company is very concerned regarding the ethereum 2.0 launch. It will change ethereum’s proof-of-work algorithm and replace it with a proof-of-stake solution.
Similar concerns are echoed by ethereum community members and enthusiasts. Many fear the switch to PoS will be a very lengthy transition period. It may even take years before it is fully completed.
The decision to remove bitcoin cash is slightly different. The altcoin’s market valuation has decreased significantly in 2019. Coinfloor members feel that supporting it is no longer worth the resources required.
Coinfloor has confirmed it is looking into adding new services related to bitcoin. Cryptocurrency lending is one of the options currently on the table.