San Francisco-based cryptocurrency exchange Coinbase has launched a staking program for Algorand (ALGO).
Coinbase announced today on Twitter, saying the initiative will allow ALGO users to earn rewards for holding the cryptocurrency on its platform.
“Starting today, eligible customers can automatically earn rewards for holding Algorand (ALGO) on Coinbase,” the exchange tweeted.
Following the announcement, all ALGO rewards received via the initiative will be reinvested to accrue more profits.
Unlike previous cryptocurrency staking programs that require users to lock up their assets for a particular period, the ALGO staking exercise does not require “lock-ups,” minimum balance, or restrictions before users can earn rewards.
Coinbase is among the first exchanges to launch a staking program for cryptocurrencies. However, its staking initiative is available to users in selected jurisdictions, including the U.S., the U.K., France, Spain, the Netherlands, and Belgium.
With today’s development, ALGO is the third cryptocurrency after Tezos (XTZ) and Cosmos (ATOM), Coinbase supports for staking rewards.
ALGO is the native cryptocurrency of the Algorand blockchain, a platform built to create an open, borderless, digital economy for everyone.
The cryptocurrency was launched in 2019 in an ICO that attracted $60 million investment from participants. Since its launch, the coin has been listed on several cryptocurrency exchanges, including Coinbase, Kraken, KuCoin.
ALGO uses a proof-of-stake (POS) consensus algorithm, making it easier for Coinbase to deploy the staking initiative for the cryptocurrency.
“ALGO was built as a yield-generating asset, and Coinbase wants to make it simple for customers to take advantage of its properties,” the San Francisco-based exchange added.
Today’s announcement positively impacted ALGO’s value, as the cryptocurrency spiked by more than 10% in the hour leading to press time. The feat comes at a time when the value of most altcoins is depreciating due to bitcoin’s movement.
At press time, ALGO was trading at $0.36, a little higher than its previous price of $0.33 before the announcement broke.
