Tezos (XTZ) skyrocketed by an eye-popping 70 percent on the Coinbase exchange. At 2:20 UTC, XTZ touched the $1.70 price tag, reaching its highest level since May, but the rally swiftly cooled off. XTZ is still up by 30 percent, currently changing hands at $1.16, according to CoinStats data.
On Nov. 6, cryptocurrency exchange Coinbase announced the implementation of staking rewards for Tezos on its retail platform. In such a way, Coinbase wants to incentivize its users to participate in the Tezos network, thus making the underlying blockchain "more secure and efficient."
"Staking lets you earn income with your crypto by participating in the network of a particular asset. When you stake your crypto, you make the underlying blockchain of that asset more secure and more efficient. And in exchange, you get rewarded with more assets from the network."
The San Francisco-based exchange launched staking for deep-pocketed Coinbase Custody clients back in March, but it needed to iron out regulatory issues with the Securities and Exchange Commission (SEC) before offering the same service to ordinary investors.
In lieu of relying on delegated staking services, there is now a possibility to store XTZ on the number one exchange in the US. Coinbase will be able to get rewards every three days after the initial holding period of 35-40 days.
However, there's a catch. Coinbase will trim the eight percent reward offered by Tezos for storing coins directly to just five percent. It is a reasonable trade-off for convenience and security provided by the $8 bln crypto giant, but it might rub, but it might rub many crypto enthusiasts the wrong way given that they see the exchange as an unnecessary intermediary.
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