If the Matic Network team and community thought 2019 was good, 2020 looks set to top that. Little more than two weeks into the new year and the Plasma-based scaling project has received the good news that Coinbase has added the Matic token to its institutional cold storage platform. The insured and regulator-approved Coinbase Custody is the home to digital assets like BTC, LTC, and LINK. It’s the place where monied investment firms go to lock up their tokens. Matic is thus joining an elite group of tokens that have been granted entry into Coinbase Custody’s hallowed halls.
Deposits and withdrawals are now live on Coinbase Custody for Matic. When the news dropped, supporters of the project were swift to offer their praise and congratulations on crypto Twitter. “Kudos to Coinbase for recognizing an incredibly strong project which will affect our entire crypto ecosystem,” tweeted one.
From Seed Support to Full Custody
Coinbase’s interest in Matic Network is no secret. In fact, the California crypto business was involved right from the start, having supplied seed funding via Coinbase Ventures. Now, things have gone full circle, with Matic returning to Coinbase following its initial exchange offering and mainnet launch. All that’s left to complete the story is for Matic to be listed on Coinbase’s retail exchange, a move which is by no means certain, but a distinct possibility.
Like many of the projects that sprang to life in 2019 during the IEO boom, Matic Network aims to solve the scalability problem that’s crippled major networks like Ethereum. Unlike its IEO peers, however, Matic has actually made good on its promise, launching a network that can scale to up to 65,000 tps and providing a smooth user experience for decentralized app developers and users. Payments, decentralized exchange, and blockchain gaming are among the use cases envisioned for Matic Network, which has already gained the support of scores of dApps that have joined its ecosystem.
Coinbase Embraces Matic But No Word on Other IEOs
With research showing that the vast majority of 2019’s IEOs have lost their investors’ money, Matic is one of the few projects to have succeeded in this respect. It is not its positive ROI that will have convinced Coinbase Custody to add Matic, however. Rather, it will be the token’s genuine utility, strong community, and deep liquidity that sealed the deal. Investors of other initial exchange offerings hoping to see their favorite token emulate Matic could be in for a long wait. Most of last year’s IEOs have sunk without a trace, or are still siloed on the exchange that launched them.
Matic, conversely, has gone from strength to strength, with a particular highlight occurring in September when it was added to Binance Futures. Traders can now go long or short on Matic with margin, together with other leading assets like BNB, BTC, and ETH. In the wake of its Coinbase Custody listing, however, and with the promise of more good news to come, savvy traders will be leaning towards long.