Cointfloor celebrated its eleventh anniversary last January 3rd of 2020 and in the same day, the company started to support solely on Bitcoin. In addition, the company will also get rid of the bitcoin cash which was founded two years ago after the controversial arguments involving bitcoin.
The start of process of shifting the network away from the energy-consuming proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS) was planned in advance before the launching of ethereum 2.0, tentatively for early 2020.
For smaller crypto players, the Coinfloor’s decision which suggests on nurturing a team with the specific expertise to follow the technical trials and tribulations of coins like ethereum may be too costly especially when it only constitutes a small part of their trading volume.
Obi Nwosu, the founder and CEO of Coinfloor said that the upgrade of Ethereum’s platform could take years to complete because of its complexity. For a period of time, there could be two versions of Ethereum operating.
It’s likely to be years before the old ethereum PoW chain is fully merged into the new PoS network which leads to current discussions around ways to create a secure bridge between the two chains, according to some ethereum developers.
Coinfloor is a small exchange founded in 2013, with 24-hour volume of trading between bitcoin and GBP at just $450,000 compared to $1.5 million of BTC/GBP at Coinbase Pro. according to CoinMarketCap.
The headache of accommodating ethereum's planned upgrades was not worth a diminutive increase in overall trading volumes based on Nwosu’s opinion.
Nwosu added, “You have to maintain that currency every time they make an update or a change and ethereum has got a long way to go with updates and changes to the platform.” In addition, he said trading in ethereum comprises a tiny fraction of the exchange’s volume which is predominantly bitcoin. Coinfloor which is licensed by the U.K. Financial Conduct Authority (FCA) and has access to the country’s Faster Payments Service for instant fiat deposits and withdrawals, waited for regulatory certainty around ethereum before finally listing the token around the end of last year. Similar considerations informed Coinfloor’s decision to remove bitcoin cash.
Nwosu also mentioned, “In terms of traction compared to bitcoin, [bitcoin cash] has gone from a third of the market cap to one-tenth of market cap over last year. So it was under a certain level of support and interest for us to expend resources on listing it.”
Nwosu stated that as it doubles down on bitcoin, Coinfloor will also explore new avenues in areas such as lending in the coming year.
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