Coinbase’s Dance with Ethereum Classic: Not Ready to Tango Yet

What Happened?

Recently, analysts and Ethereum Classic enthusiasts were buzzing with excitement when an API link to Ethereum Classic appeared on Coinbase. The news spread like wildfire, especially after Barry Silbert—a big name in the cryptocurrency world—shared it across social media. However, the joy was short-lived when Coinbase swiftly squashed those hopes with a sobering announcement:

“We have no plans to support ETC at this stage. This API call is a relic of the ETC withdrawals.”

Digging Into the Past: The Origins of Ethereum Classic

To understand why this API link even existed, we need to rewind to July 20, when a significant hard fork in the Ethereum network occurred. This was in response to the DAO hack that had many investors clutching their pearls, scrambling to recover lost funds. Ethereum co-founder, Vitalik Buterin, even chimed in, detailing how 4.5 million ETH was already being returned to DAO token holders.

Two Sides of the Coin

The Ethereum community was not without its divides, though. Many felt that the Ethereum Foundation’s decision to bail out investors was like handing out free snacks to kids who lost their lunch money. Those on the opposing side argued it was about accountability—after all, shouldn’t the creators and investors of the DAO take some responsibility for their software’s vulnerabilities?

Enter Ethereum Classic

Barry Silbert and other proponents of the original Ethereum vision rallied behind Ethereum Classic, advocating for the uncensored ethos that initially launched Ethereum into the stratosphere. In many circles—especially amongst Chinese crypto enthusiasts—Ethereum Classic is revered as the “true” Ethereum.

Is Coinbase Playing Hard to Get?

Fast forward to today, and Ethereum Classic is still flexing its muscles as the sixth largest cryptocurrency, boasting a market cap of around $1.5 billion. Despite its rising popularity and the establishment of the Ethereum Classic Investment Trust, Coinbase remains tight-lipped about any future plans to support it. Meanwhile, industry experts and hopeful investors are nudging Coinbase’s CEO, Brian Armstrong, to reconsider this decision.