Three Reasons Why Coinbase Offering Cardano Staking Rewards Is Bullish
Just a few days after Cardano and Coinbase’s one year anniversary, the crypto exchange announced staking rewards for the smart contract protocol.
Covered:
- Mainstream Adoption
- Accessibility
- HODL’ing
- Regulation
More @Cardano. More staking.
We have officially expanded staking offerings to include $ADA so you can begin earning rewards on your crypto!
Read more here ? https://t.co/DgGBE2Kn0w
See $ADA info here ? https://t.co/wy54lLRcQU pic.twitter.com/6T6ZF9FPkq— Coinbase Assets (@CoinbaseAssets) March 23, 2022
Coinbase announced the other day that it’s adding Cardano to its small list of assets that offer staking rewards. It might seem obvious that adding staking rewards is a good thing for Cardano — and even crypto writ large — but let’s outline exactly why.
Two of the reasons are self-evident. The third one is not.
1. Accessibility For Normies/Retail
Not everyone has to be a degen. The more the merrier.
Cardano is no different than every other protocol in the sense that the tech they offer is intimidating.
Even the prospective crypto investors that haven’t been scared off by concern trolling and manage to download Coinbase, often stop there. The leap into DeFi, and the wallets they have to sign up for, are too much either technologically or because they can’t be bothered.
Coinbase, as it always does, makes things easy. This means a lot more users buttressing the network, without even probably realizing they are doing it. Not everyone has to be a degen. The more the merrier.
And, with Hydra coming Cardano is going to need a lot of stakers to scale.
Recommended: How The Hydra Scaling Solution Kills Sundaeswap FUD
2. Incentivizing HODL’ing
Coinbase users can look at buying ADA as a “set it and forget it” type of asset
Much has been made of Cardano’s struggles since the euphoria surrounding the release of smart contracts. But the simple reason for the fall of the ADA token is that the network wasn’t incentivizing it enough. Yes, stakepools were prevalent, but transactions on the network were low.
Now that transaction numbers are growing thanks to DeFi and NFTs, there’s more reason for everyone to hold ADA. As Cardano’s core community begins to reinvest and the hype builds up again having staking rewards readily accessible for retail can only help the snowball effect.
Thanks to the aforementioned development on the network, Coinbase users can look at buying ADA as a “set it and forget it” type of asset, rather than a speculative one they have to sell in a timely manner.
Recommended: Cardano’s Recent TVL Surge Is Just The Beginning
3. Regulatory Friendliness
Coinbase taking on Cardano staking rewards should render regulatory concerns forever dead.
One unintended effect of Coinbase adding staking rewards for Coinbase is that, in a way, it’s a proof of concept for Cardano’s regulatory friendliness.
Coinbase has always been known, and self-described, as regulator friendly. They will bend the knee before they have to rather than “move fast and break things.” So Coinbase adding staking rewards tells you that all that FUD back in November was exactly that.
For those unfamiliar, the Robinhood-lite exchange E-Toro delisted Cardano, citing regulatory concerns. Hoskinson immediately rebuffed the notion, but the story had legs and took a toll on Cardano’s price. Nevermind that E-Toro later recanted.
Coinbase taking on Cardano staking rewards should render regulatory concerns forever dead.
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The post Three Reasons Why Coinbase Offering Cardano Staking Rewards Is Bullish appeared first on CryptosRus.
Text source: CryptosRus
