ADA Price Spikes After The Coinbase Custody Staking Announcement

Cardano’s ADA price spikes right after the Coinbase custody staking announcement and the asset became the best-performing token in the top 10 rankings by market cap, as we are reading further in the latest Cardano ADA news.

In a tweet published back on Friday, IOHK (Input Output Hong Kong), the parent company of Cardano, announced a new partnership with Coinbase Custody to list the ADA token later in the year. As a part of the agreement, the ADA holders will be able to use their tokens staking functionality while enjoying the robust cold storage on the Coinbase Custody platform. IOHK tweeted on the importance of this move:

 “This custody agreement allows us to offer the same secure storage solutions that can be found in traditional finance to ADA holders, without sacrificing what makes Proof of Stake blockchains special – being able to participate in the network.”

According to the latest announcement made during the Cardano 2020 Virtual Summit, the ADA staking on Coinbase will start in 2020. Proof of Stake blockchains utilize staking as an incentive mechanism and unlike proof-of-work mechanisms, staking entails contributing a huge pool of funds to validate transactions while still being able to earn rewards for securing the altcoin network. The Coinbase Custody partnership is the latest in the new developments concerning the project. Charles Hoskinson was talking up the merits of the altcoin network in recent times and demanded that the crypto community not associating himself with the ETH blockchain.

Voltaire is coming! We’ve announced a pending delivery date for Cardano’s Voltaire era. We’ve issued a full press release, please contact media@iohk.io for details @InputOutputHK #cardano2020

— IOHK Media (@IOHKMedia) July 2, 2020

Following the latest announcements, Cardano’s ADA price spikes up by 5% making Cardano among the highest gaining 10 altcoins over the past day. Since it got into the top 10 rankings, by market capitalization at the start of June while ADA gained 25% rising two spots higher. Part of the price increase has come amid anticipation of the planned Shelley upgrade which will see the asset becoming fully decentralized and replacing the federated architecture.

The current testing phase will give way to the mainnet launch later this month with staking functionality in August. According to the Cardano roadmap, the decentralization which is brought by Shelley will separate the project from other PoS altcoins. The staking pools after Shelley come online and will reach 1000, allowing for more equitable reward distribution.