News from Coinbase ERP20 vs. Native Token Problem

Archive Support
1

Hi guys,

is there any news on the problem yet?
Coinbase ERC20 vs. Native Token

Abstracts: IOTEX token send from Crypto.com to Coinbase.
These are on “Pending”, there are already some posts about this.

What is the current status?

Best regards

2

No news regarding Coinbase’s timeline to add native IOTX integration yet, we are in constant communication with them and pushing – you will know when we know!

As context on this Coinbase issue, here are the facts:

  • IOTX first started in 2018 as an ERC20 token on Ethereum, and staking/voting occurred on Ethereum until mid-2020 when IoTeX Mainnet GA was launched along with the native IOTX token.
  • As part of the Mainnet GA launch, all IOTX-ERC20 that was staked on Ethereum was automatically converted to native IOTX on IoTeX; however, any non-staked IOTX-ERC20 remained in users’ wallets
  • After the migration, there were now two versions of IOTX – IOTX-ERC20 on Ethereum and native IOTX on IoTeX. The total supply of IOTX-ERC20 was FINITE and LESS THAN the total supply of native IOTX. No more IOTX-ERC20 would ever be minted due to the non-upgradeable token contract.
  • Prior to Coinbase listing, IOTX-ERC20 was freely converted 1:1 with native IOTX and vice versa using the ioTube cross-chain bridge. Because the demand for IOTX-ERC20 wasn’t high (it was used lightly on Uniswap/Cyclone), there was never an issue.
  • After Coinbase listed IOTX-ERC20 in August 2021, demand for IOTX-ERC20 skyrocketed due to the lower total supply compared to native IOTX, which trades on the vast majority of other exchanges like Binance
  • Due to the FINITE supply of IOTX-ERC20, eventually demand for IOTX-ERC20 exceeded the supply of IOTX-ERC20 and no more could be minted. This difference in total supply of IOTX-ERC20 (which trades on Coinbase) and native IOTX (which trades on pretty much everything else) is the most likely cause of price discrepancies you see today across exchanges.
  • The optimal solution is for Coinbase to list native IOTX as soon as possible, which we are discussing frequently with the Coinbase team.

Thanks,
IoTeX Team

3

Do you know if Coinbase is planning to take this step? Maybe they’re just waiting for the price of native tokens to surpass that of ERC-20s …
And how long could it take you to complete this step?

4

Hello Lorenzo,

Happy new year and wish you all the best in 2022!
Right now we don’t have the accurate news about when and how long the Coinbase will take this step.I think there will be formal news announced if this setp finshed.

Best regards,
IoTeX Support team