New partnerships in the cryptocurrency industry are continuously being made, with this fact being proven again with Coinbase. It was confirmed that the Coinbase Custody subsidiary has partnered with the Web3 Foundation. This partnership will enable for this foundation to receive custody solutions for their Polkadot network. Since the Web3 Foundation announced this upcoming exchange, it’s become a popular subject amongst investors. It’s because of the scalable protocols implemented into this cross-chain network. However, the Polkadot Network has experienced significant delays since being announced in 2016. Development of these scalable and shareable exchange didn’t begin until $100 million was acquired back in 2017.
They’ve sold tokens previously, with the 1st round of token sales accumulating in five million sold during 2018. An additional five-hundred thousand SAFT Coins were sold throughout the 2019 fiscal year. Unfortunately, previous promises for a shared exchange with scalable products hasn’t been unveiled. This marks four years of delayed promises, with the Coinbase Custody Solutions agreement hoping to stop additional delays. Account-holders under the Polkadot Exchange can claim DOT tokens directly from custodians with the Coinbase Custody platform. This marks the 1st instance the Polkadot has implemented a shareable and scalable token. It’s also the first time that the DOT Token has been sold publicly with a blockchain exchange, as Polkadot continues to develop their respective network.
The Chief Executive Officer at Coinbase Custody, Sam McIngvale, spoke to reporters on the announcement partnership. He stated: “Polkadot is one of the most exciting projects in the entire crypto ecosystem right now. It’s solving two of the biggest challenges that blockchain-based platforms face today: interoperability and scalability. We’re excited to be working with Polkadot and Web3 Foundation to offer dot holders the most secure and efficient tools for managing tokens and staking.”
Distributed Token Benefits
Individuals that support this newly formed partnership under the Coinbase Custody platform will receive additional access to Genesis Blocks; a specialized service offered on the Coinbase exchange. Staking DOT Tokens under this exchange allows for interest to be earned daily, with the respective percentage not known publicly. Some provisions allow for Polkadot traders to engage with the On-Chain Governance System, which provides for coordinated enhancements to previous investments.
The Chief Financial Officer with the Web3 Foundation, Kasper Mai, commented on this partnership when questioned by reporters at the announcement event. He stated: “With Polkadot genesis fast approaching, we are focused on supporting high-quality integrations to ensure that Polkadot is easy to use and dot holders are secure. I can’t think of a more trusted name in crypto than Coinbase to be supporting Polkadot from block zero.”
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