Coinbase Reveals Q2 Listings: What Changes?
The biggest U.S. crypto exchange, Coinbase, has announced a move towards higher transparency, disclosing 50 digital currencies that are under consideration to become officially listed on the platform in the second quarter of 2022.
The unveiled list contains 45 ERC-20 tokens on the Ethereum network, and 5 SPL tokens on the Solana network. Large market cap coins like Binance USD (BUSD), BitDAO (BIT) are among the potential candidates, but the majority are lesser-known crypto projects.
The decision was made “as part of an effort to increase transparency by providing as much information symmetry as possible”, Coinbase shared in its blog post. It also acts as a pilot for the communication of potential listings.
As part of an effort to increase transparency we want to communicate the assets under consideration for listing in Q2 2022 (April 1st, 2022 to June 30th, 2022). Changes to our roadmap will be updated on this blog post regularly https://t.co/zu1IBdrD7X pic.twitter.com/cBRYe47E2m
— Coinbase Assets (@CoinbaseAssets) April 11, 2022
Information symmetry refers to a state in which all relevant information is shared between all involved parties. This means that none of the parties possesses more insider knowledge than others, thus allowing the market to expect a higher degree of fairness.
Exchange Listings Impact Prices
Listings on major centralized exchanges, like Coinbase, have historically always had an immediate positive impact on the asset’s price.
Coinbase applies strict listing policies, subjecting candidates to certain legal, compliance and technical standards, and having a large market cap or being a popular crypto does not automatically guarantee a listing on the biggest CEX in the U.S.
Receiving a listing on such an exchange indicates higher trust levels in a certain asset, which automatically generates attention, popularity, higher demand, and finally, higher prices.
According to research data, the value of the coins listed on Coinbase tended to grow by up to 50 percent immediately after being announced for listing.
However, the moment itself typically acts as a breaking point of the price rally, as the pump gets exhausted, leading to a steep price dump just minutes later.
The Market Reacts
In the meantime, the crypto market does not seem to be celebrating Coinbase’s decision.
Multiple users expressed their surprise at the exchange’s selection of tokens, and criticized the exchange for its choices.
In addition to alleging ERC-20 token bias, crypto Twitter is wondering why Coinbase is planning to add never-before-heard-of tokens, but not popular, well-established assets like HBAR, CSPR, XDC and even XRP.
What the fuck is that list? I've literally heard of none of these coins . Maybe look into the likes of $hbar , $cspr, $xdc you know coins with real world usage and actual use case oh and let's not forget $xrp
— Irish red crypto (@johnaldinioh89) April 11, 2022
Others remarked, that the list of unknown coins seems like a “poorly timed April’s first joke or the sweet revenge by rogue woke employees”, which could even lead Coinbase to lose its listing reputation as a measure of quality and an unofficial vetter of crypto projects.
Fairly sure that this is a poorly timed April’s first joke. Or the sweet revenge by rogue woke employees that refused to leave and are not determined to bring the company down from the inside. Coinbase about to lose its branding as a place for quality, vetted projects
— AVB | alejandro.near (@AlejandroVBeta1) April 12, 2022
Read more: https://dailycoin.com/coinbase-reveals-q2-listings-what-changes/
Text source: DailyCoin.com
