ALEO, the native token of Aleo, a layer 1 network that uses zero-knowledge proofs (ZK) with a focus on privacy and scalability, has surged after being listed on Coinbase.
Coinbase’s Experimental Asset List
Coinbase added Aleo to its platform under the experimental label about 24 hours ago. The experimental label refers to assets that are new to the platform and generally have lower trading volumes and higher volatility. This label, which is a warning for investors, also indicates the potential for greater losses compared to alternative cryptocurrencies. In addition to market value and trading volume criteria, project and team capacity can also be effective in defining this label.
Aleo’s Privacy-Focused Approach
The Aleo protocol uses zero-knowledge proofs to ensure user privacy. This technology allows a user to prove that they have a certain value without revealing what that value is. This allows users to transact without sharing their account balance or transaction details. However, there are many competitors in the ZK (zero-knowledge proof) space. Other blockchains are experimenting with ZK, including MINA, ZKsync, LRC, ZEN, and others.
Collaboration with Coinbase
The Aleo network announced in its latest post that they will collaborate with Coinbase for custody services and various programs.
“We chose Coinbase for custody.”
Aleo CEO Alex Pruden cited Coinbase’s unique experience and robust infrastructure as the reason they chose Coinbase. The US-based cryptocurrency exchange Coinbase operates in many areas simultaneously. In particular, it works with many institutions and organizations, including the US Department of Justice, through its Coinbase Prime service.
“We chose Coinbase for their unique experience.”
At press time, Aleo is trading at $3.39, up nearly 6% since launch.
Aleo’s partnership with Coinbase reflects the growing interest in privacy and scalability-focused projects in the cryptocurrency market. This development could be an important step for Aleo’s future growth.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
