Coinbase Launches Custom Crypto Assets As Ethereum Consolidation Approach
Leading US-based crypto exchange Coinbase is launching a custom crypto asset ahead of the upcoming consolidation of Ethereum (ETH) into a proof-of-stake consensus mechanism.
Coinbase says it is rolling out Wrapped Staked Ethereum (cbETH) so customers can use their Staked Ethereum (ETH2) on the platform as The Merge will lock all ETH2 in place until the update is complete.
“Coinbase is allowing ETH staking customers to receive an ERC20 utility token called Coinbase Wrapped Staked ETH (cbETH), which is a liquid representation of their staked ETH.
All ETH staked will be locked until future Ethereum protocol upgrade is completed. In the meantime, Coinbase created cbETH to give customers the option to sell, transfer, spend, or use their staked ETH while it remains locked.”
ETH-based altcoin, which is a liquid, tradable asset offered to investors who place their Ethereum on Coinbase, which can be sold or sent off the platform but cannot be used on other blockchain networks, crypto exchange warning.
“Do not send this asset over other networks, or your money will be lost.
Coinbase Wrapped Staked ETH (cbETH) is a utility token representing ETH2, ETH staked via Coinbase. cbETH can be sold or sent off the platform, while ETH2 will remain locked until a future protocol upgrade. “
Coinbase says ETH2 wrapping will be rolled out gradually to eligible users throughout the day. The crypto exchange also notes that cbETH is not meant to track the 1:1 price of Ethereum.
“The price of cbETH is NOT meant to track the price of ETH 1:1. cbETH represents the ETH staked plus all of its accumulated staking interest, starting at the conversion rate. and the balance of cbETH is initialized (June 16, 2022). "
Aug 25, 2022