Abra, a close competitor to Coinbase, has announced that it will be adding seven more cryptocurrencies to its mobile app. Agur (REP), Status (SNT), 0x (ZRX), Stellar (XLM), Bitcoin Gold (BTG), Stratis (STRAT), and DigiByte (DGB) will all be featured, meaning that Abra now offers 20 cryptocurrencies through its application.
This looks like another stepping stone towards Abra becoming one of the dominant fiat-to-crypto exchanges in the industry. Abra is available worldwide and supports 70 fiat currencies including USD. Their service is reasonably easy to use as customers can send money to the app via bitcoin, wire transfers, ACH transfers, and also send money with supported credit and debit cards. Abra has also drawn the interest of day-traders by not charging for exchanging between cryptocurrencies. For instance, exchanging OmiseGo (OMG) for ZCash (ZEC) will not cost the trader anything (although Abra makes it clear that the company makes money from the spread).
The way Abra manages to offer so many cryptocurrencies is through their use of ‘synthetic digital assets.’ These are smart contracts created for the purpose of exposing their customers to the volatility of the market while not holding the physical elements of the cryptocurrencies you invest in. At the moment, all cryptocurrency actions are handled by bitcoin (which may soon change to litecoin), and their synthetic digital assets ensure that your money is pegged to the price of the coin you have chosen. This essentially makes Abra a derivatives market.
At the moment, Abra is still lacking features such as the ability to withdraw some cryptocurrencies from the application and the ability to change your transaction fee when sending bitcoin.
Abra has stated that they are working on ‘adding more digital assets’ to their service but have not announced which ones they are planning just yet.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.