Coinfloor, which is one of the oldest crypto exchanges in UK, is planning to delist Ethereum (ETH) next month so that it remains focused only on the Bitcoin (BTC) trading.
The reasons why Coinfloor is doing this is that hard forks have an unclear future and the second most important coin when it comes to market capitalization needs a lot of technical support. Bitcoin cash (BCH) will as well be delisted, Coinfloor supporting only Bitcoin starting with January 3, for the birthday of this coin.
Ethereum, Too Expensive
Coinfloor’s plan comes before Ethereum 2.0 has been announced to be launched in the early 2020. This will start the process of changing the network from the proof-of-work (PoW) mechanism, which is energy consuming, to the proof-of-stake (PoS) one. The decision indicates technical tribulations and trials of ETH are too expensive for crypto players that aren’t that big, especially if ETH is only an insignificant part when it comes to trading volume.
The Ethereum Platform Upgrade May Take Years to Complete
From the moment when it will start next year, the Ethereum platform upgrade can take many years to complete. At least this is what Coinfloor CEO and founder Obi Nwosu thinks. The operation is so complex that there may be a time period in which 2 versions of the coin are running, Nwosu’s says. Many Ethereum developers think it’s going to be years before the Ethereum PoW chain will be merged with the PoS network, discussions around which ways are the most efficient for creating a secure bridge between the 2 chains appearing all over the place.
Coinfloor Predominantly Trades in BTC
Coinfloor was founded in 2013 and is a small crypto exchange that has a 24-hour BTC/GBP trading volume at only $450,000, as the CoinMarketCap says. This is significantly lower than the $1.5 million BTC/GBP 24-hour trading volume at Coinbase Pro. Nwosu thinks accommodating the Ethereum upgrades is not worth the tiny increase in the overall trading volumes. Nwosu said.
“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.”
Licensed by the UK Financial Conduct Authority (FCA) and having access to the UK’s Faster Payments Service for instant and withdrawals in fiat currencies, Coinfloor had to be regulated for ETH before listing the token at the end of 2018. Its ETH trade volume is very small because the company predominantly trades in BTC. This is what Nwosu had to say about BCH:
“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.”
As Coinfloor is doubling down on BTC, it will also start exploring new lending avenues.