As the world of cryptocurrency continues to grow and expand, the need for secure and reliable sources to obtain crypto expands with it. Recognizing the need for trust and transparency, GDAX has revealed a new structure for evaluating which cryptocurrencies will be added to its exchange platform, called the GDAX Digital Asset Framework.
GDAX’s Framework Aims to Improve the Whole Crypto Ecosystem
The framework evaluates coins based on a list of six criteria. It asks: does the coin carry a high risk of market manipulation? How does the coin incentivize its holders to interact with the coin’s network? Additionally, the framework judges coins based on how they interact with relevant legal frameworks, which factors are important to the coin’s performance, and on the coin’s technological capabilities.
The framework comes at a critical time in the life of cryptocurrency. On the one hand, a growing number of legal entities are cracking down hard on crypto; on the other, there are more than 1100 cryptocurrencies in existence, with more being added each day. While there is certainly an incredible amount of money to be made by investing in new coins, it can be difficult to discern a promising coin from a ‘pump-and-dump’ or pyramid scheme.
While GDAX does not have the power to impose legal regulations onto the world of crypto, it does have enough influence to shape the way that cryptocoins are perceived and developed. In addition to protecting and educating consumers about the qualities that make a cryptocoin a particularly valuable asset, the framework will also serve as a set of terms that crypto developers should aim to comply with.
Continuing the Coinbase Legacy of Regulation, Normalization
GDAX, formerly known as the Coinbase Exchange, was the first officially licensed Bitcoin exchange in the United States. It was rebranded when Coinbase realized that its exchange had a few too many features to be very practical for “casual crypto enthusiasts” who simply wished to buy and hold cryptocurrency.
GDAX’s parent company, Coinbase, has made its name in the world of cryptocurrency as a commonly used gateway into the crypto space. The user-friendly Coinbase wallet operates across mobile, desktop, and online platforms, and can be used to quickly and easily purchased Bitcoin, Litecoin, and Ethereum using fiat currency. While Coinbase has faced widespread user reports of poor customer support, it has managed to keep its footing as a staple of the crypto space.
As cryptocurrency continues to make its way into the world of mainstream financial technology, a healthy, balanced relationship with regulatory measures is necessary for the success of the industry. Because cryptocurrency is so new, legal protections and frameworks have not had the necessary time to catch up with the technology, which is moving at warp-speed. With regard to this, GDAX is continuing to prove itself as a wise and savvy entity on the crypto legal front.
(Photo: Coinbase)
