Tezos (XTZ), a cryptocurrency with a market valuation of over $950 million, is the next coin to join eToro’s list of featured virtual assets.
The introduction of new instruments adds to eToro’s rapidly expanding suite of altcoins. The Israeli social investment platform has had a string of recent announcements in a major push to attract crypto traders and grow its user base. Earlier this year, Gibraltar’s financial services watchdog has awarded its cryptocurrency arm, eToroX, its bespoke license for blockchain firms using distributed ledger technology.
In addition to Tezos, eToro customers can already trade the actual underlying assets of Bitcoin, Ethereum, Bitcoin Cash, XRP, Litecoin, Ethereum Classic, Dash, Stellar, NEO, EOS, Cardano, IOTA, ZCASH, and Tron. The latest addition expands the total number of cryptocurrency assets available on eToro’s platforms to fifteen.
Diversification with higher-ranked coins
Unlike many other brokers, eToro does not simply adhere to offering crypto CFDs but also allows clients to purchase the assets, with eToro acting as custodian and holding the digital coins on behalf of clients.
In addition to clients’ ability to purchase actual XTZ tokens, the coin will most likely be implemented on eToro’s CryptoPortfolio, which promotes the simple diversification through focusing on cryptocurrencies with a market cap around $1 billion and minimum average monthly volume of $20 million.
Tezos has set up a complex governance structure whereby the token’s developers own the code, but the $232 million raised in the ICO, which has now grown to nearly $1 billion, is managed and controlled by an independent Swiss foundation.
The Tezos project and its founders, however, are facing several class-action lawsuits in the United States. Plaintiffs accuse them of fraudulently marketing the sale of their tokens as charitable, non-refundable contributions in order to avoid governmental and private scrutiny.
Commenting on the news, eToro co-founder and CEO Yoni Assia said: “Tezos is making great progress and some banks are already choosing its blockchain network for security token offerings worth over a billion dollars. As we see financial institutions move more into the world of crypto, it is important that ordinary investors can take advantage of these technological developments, which is why we’re excited to be adding coins like Tezos to eToro.