Coinbase has become the largest validator for Tezos (XTZ)
Concerns for Tezos (XTZ) come not only from the community but also from significant exchanges. After announcing staking support for XTZ in November 2019, the Coinbase exchange dig into the Tezos network, becoming the largest validator for XTZ.
Coinbase surpassed Polychain Labs to become a validator for Tezos
It seems that exchanges are trying to “get along” more with cryptocurrency projects through digital asset validation. Accordingly, Coinbase has become Tezos’s largest validator by passing Polychain Labs.
Coinbase is one of 80 companies that spent a total of $ 42 million to lobby for Blockchain and cryptocurrency policies in Washington, D.C, in the first quarter of 2019.
Looking at the chart above, it’s easy to see that Binance is making great strides in this area, currently occupying the 4th position. However, the chart does not include platform manufacturers, and if it does, it will lay Foundation Baker 2 in 3rd place.
Validation is the process when miners (in Proof-of-Work) or coin holders (in Proof-of-Stake) validate a specific transaction. In Tezos’s case, because it is based on PoS, the more coins a person or entity has, the more he can control his power.
Are exchanges interested invalidation?
The growing interest from cryptocurrency exchanges for the validation of significant digital assets raises the question of whether this is the next trend.
Bobby Ong, co-founder of Coingecko, shared on Twitter how he felt when he saw the exchanges dominating most lists of validators. He seems to think that merely staking as a service could struggle.
We will soon see exchanges dominating most top validators list. Staking as a Service companies will struggle. Exchanges will compete to offer zero fee staking. Easier for users and exchanges can cross-subsidise from their trading biz. Users gets further entrenched into exchanges. https://t.co/RPGJFwEgBE
— Bobby Ong (@bobbyong) December 14, 2019
In any case, the positive developments surrounding Tezos have had an impact on its price, as cryptocurrency was one of the most vigorous activity at the end. This is even more impressive because most digital assets have dropped in price recently.
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