New York (CNBC Business), a popular and fast-growing virtual currency exchange, has announced its intention to go public. The Financial Times reports that the exchange “hopes” to raise $75 million in capital. This is the biggest private funding raise by a U.S. exchange since the dot-com crash of 1999. The New York exchange has been working on developing tools and processes to allow its members to trade using digital currencies. Recently the company held its first full meeting to discuss its future plans.
According to a release from Coinbase, “coinbase is designed to help its members to convert digital assets like monies and e-wires into traditional currencies and national currencies using a user-friendly interface. Transactions will be free, convenient, and safe…The ultimate goal is for coinbase to become the leading service for financial transaction across multiple platforms.” The project is being led by Charlie Schleifer, who previously served as executive vice president of marketing and technical operations at JVZ Capital Management. In his role at Coinbase, he will oversee the company’s progress towards securing its position as a leader in the emerging field of digital asset exchanges. He’ll also be responsible for the company’s future development, including “increasing accessibility to customers and enhanced functionality.”
A major step toward the plan is the addition of 2FA technology to the company’s online wallet, called coinbase X. This includes enhanced security features such as multi-signature authentication and multi-user capability, which will enable authorized users to access funds in the account even if they are not logged in to the website. Existing customers will also be encouraged to upgrade to a larger version of the standard coinbase wallet when it becomes available. Existing customers have expressed interest in using coinbase X as a place to store their money for fear of losing it to hackers, which is a risk they now know they can eliminate through 2FA use. Schleifer stated, “While we believe strongly in the security and stability of our current platform, we want to provide additional protection to our customers by introducing this enhanced security measure.”
For businesses that have already developed an email list or a newsletter sign-up process, two-factor authentication will be easier for authorized personnel to verify the identity of the subscriber. With two-factor authentication, a visitor to the website will be asked for a secret question and answer to verify their identity. The next time they attempt to log in, they will be asked to enter the secret question and answer rather than the standard password. The result is that anyone who is trying to access funds in your account will have to use the secret question and answer rather than the traditional password.
“Crypto brokers working with reputable exchanges will be regulated by the regulatory body involved in trading coins and will have to meet strict guidelines for legitimacy, performance and conduct,” added Schleifer. According to PayPal executive vice president David Bailey, “Cryptocurrency brokers that do not adhere to these guidelines are not part of our accredited deposit broker’s program and will not be able to offer services on our site. If you want to buy cryptocoinage from a fully verified and regulated broker, please visit our website for more information.”
One of the most exciting aspects of the upcoming future of Cryptocurrency is the emergence of a new economic model known as Litecoin. Unlike traditional Cryptocurrency, Litecoin is not mined like gold, but rather is given a digital coin equivalent as payment for using the Cryptocurrency system. This is in contrast to traditional methods of payment, where the value of the currency itself is taken into account. This has caused several benefits for users of Cryptocurrency. For instance, because Litecoin is not issued by any central institution, it is less subject to political instability and is a free market approach to how money is created and transferred.