Etoro Launches New Crypto Exchange, Complete With Stablecoins
Ever since Bitcoin fell dramatically from its 2017 highs, it has led to many investors and traders questioning the initial coin offering (ICO) market. As a result, many have turned to stablecoins since they are pegged to actual assets and commodities. Etoro, an extremely popular trading app, has now announced that it was offering eight stablecoins on its platform, April 16, 2019.
Early To The Game
EToro, founded in 2006, seemed to understand that the mobile payments sector would grow tremendously over the years, and have been proven right. For context, EToro had somewhere around 3 million accounts by 2013 and announced that it had over 8 million accounts at the end of 2017. The company is based in Tel Aviv, Israel, with additional offices in the UK and Cyprus. Etoro was also one of the first regulated trading platforms to offer the chance to purchase cryptocurrency, which made it popular among the cryptocurrency community.
The eight stablecoins are part of Etoro rolling out Etorox, a secure trading exchange launched by the company. This includes stablecoins related to the Australian Dollar, Japanese Yen, Swiss Franc, among others. Six cryptocurrencies will also be offered for trading, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and more.
Thirty-seven additional cryptocurrency pairs will also be offered for investing and trading purposes. Etorox will be regulated in Gibraltar. Yonia Assia seemed to indicate that this was only the beginning and that Etoro would soon to be offering more tokenized assets than ever on the platform.
Looking To The Future
Etoro is betting that more and more traders will be interested in trading cryptocurrency against various world currencies. This is a logical conclusion when one considers that the forex markets, which involve traders betting on price movement with respect to world currencies, is extremely liquid. Specifically, the forex market boasts trillions of dollars of liquidity per day. Etoro has been extremely popular in Europe and the Middle East as opposed to other areas, where it faces competition from companies such as Robinhood.
There are some that believe that Etoro might face some serious obstacles with respect to market share, and believe that the market for crypto trading is already getting crowded. Specifically, a senior analyst, Arieh Levy at well-known research firm CB Insights, states: “I’m not sure there will be too much demand.”
He cited the fact that cryptocurrency traders tend to stick to one platform as a reason why it might be tougher for Etoro to gain more market share.