Coinbase is one of the largest digital currency exchange out there. Its headquarters is located in San Francisco. Unlike other exchanges, they have a limited list of digital currencies on their exchange. It includes the popular bitcoin, Litecoin, Ethereum, and others.
The accessibility of Coinbase to a big market such as the US opens up a lot of possibilities. For example, whenever a new coin or digital currency lists on Coinbase, it is met with enthusiasm and growth. This means that the listed assets see a price jump before the listing. This effect is usually short-lived, however, many investors take advantage of this situation to make some money.
In this article, we will be exploring the topic of Coinbase listings and also speculate which crypto assets might get listed in 2019. We will also be covering the price jump aspect and try to understand it through historical data. Let’s get started.
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Why is the event of adding a new coin on Coinbase big?
Coinbase, currently, supports 15 digital currencies. You can check the whole list on their supported digital currencies page. The availability of the coin depends on the payment method and country.
There are only 15 digital currencies on Coinbase which adds value to the limited listing they have. Hence, it’s understandable the excitement of investors when a new coin is listing on the platform. Two things can be gauged from their listing: first, the coin is immediately considered good and perceived to have excellent technical and market background. Second, they have the potential to be traded in the platform, providing it major exposure to new investors. Hence, it’s easy to see why Coinbase listings are regarded as a major event in this industry.
Expected coins to be added on Coinbase in 2019
Coinbase COO Asif Hirji in his interview in CNBC came forward and stated that they are going to add more coins in the future. In his interview, he stated the following:
“The reality is that three or four years back Bitcoin was the only coin that mattered in cryptocurrency and then Ethereum came along. Now we are at a point where there are 3000 or 4000 currencies that are out there, and there are probably 200 of those that mattered, and you should assume that over time, add all the cryptocurrencies that matter in as many geographies we are allowed to add them.”
It is clear that he wants to add more cryptocurrencies over time. However, this doesn’t mean that the listing of new coins will happen in batches or quickly. Coinbase will follow their old method of adding coins. First, the coins will be added to Coinbase Pro and then it will be available on the Coinbase platform. The coins once listed will stay untradable for the first 12 hours.
This interview comes after the Coinbase announcement support for District0x, Loom Network, Civic and Decentraland’s tokens. Their PRO version also saw an addition of 4 new cryptocurrencies including Maker(MKR), Dai(DAI), Golem(GNT), and Zilliqa(ZIL).
Coinbase is also moving forward to list more ERC20 coins by supporting ERC20 Technical Standard.
So, which coins will likely get a Coinbase listing?
- Kyber Network(KNC)
- Bread Wallet(BRD)
These are all ERC20 powered tokens, but what about non-ERC20 coins or tokens? We also speculate that those will also make it to the platform. Let’s list the non-ERC20 coins that we think are likely to be listed on Coinbase in the future.
Price jumps due to Coinbase listings in the past
To speculate if the new coins will see a price jump or not, we need to check how past listings performed under the same circumstances. We know that a price spike is not guaranteed on new Coinbase listings, but it surely gives a hint on how the event can unfold. So, let’s take a look at the coins that got listed on Coinbase and saw a price jump.
Litecoin (LTC): When Litecoin got added to the Coinbase exchange, it saw a spike of 10%. The volume of trading was also high which added more value to the traders who decided to ride the pump.
Ethereum Classic (ETC): Ethereum classic also saw a price surge when the news of its listing on Coinbase came out. It saw gains over two days, 20% and 15%.
Ethereum (ETH): Ethereum didn’t see a similar kind of price spike considering that it was listed in July 2016. At that time, there was less liquidity leading to a more conservative result.
Are the new coins going to see the same jump? If yes, for how much?
We have seen mixed results of coin listings on Coinbase. In reality, the price is not impacted that much. Yes, it may see a small jump in price and may be seen as short-lived bullish price action. However, in the long term, the prices don’t keep up and end up getting below its initial listing price.
0x(ZRX) listing saw a 25% increase when listed. But if you see the whole picture, it is still down 50% than its 2018 all-time high price.
Even when we pick the coins that had significant growth upon listing, they always ended up getting lower. ETC is a prime example whose price jumped from $13 to $18.45 during its Coinbase listing. However, it is currently trading at just $5.07, following the general bearish trend of the market.
Coinbase also has user-retention issues which mean that it loses liquidity over time, especially during bear markets like the one we’re going through. The market sentiment plays a pivotal role in price-action and Coinbase user retention.
We can easily conclude that Coinbase listings have a temporary impact on a coin’s price. If you are brave enough and know what you are doing, you can take advantage of the initial pump to make some money. However, we advise everyone to be careful, especially during the current market conditions.
We also took a look at the probable crypto assets that may get listed on Coinbase, however, as mentioned earlier, if you’re looking to take advantage of the usual price pump, beware that it may not behave as expected since the market conditions and sentiment have changed so much lately.
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