Binance IEO Project, Band Protocol, Sees Coinbase Effect With Listing News; What Altcoin Is Next?
The ‘Coinbase Effect' is not something new; it is a temporary surge in pricing for the listed coin. In the past, Coinbase has been accused of pumping and dumping the coin through the listing as the price of the token starts pumping hard before the announcement is made public.
But for a very brief time, digital assets to be listed on the exchange get a good increase in its price.
Just yesterday, the San Francisco-based exchange announced the listing of a DeFi project, which is no surprise given that the exchange finds the DeFi space similar to what happened with Bitcoin in 2013 when few understood it and price movements drove its growth.
The exchange is now listing BAND on Coinbase Pro next week on Monday. The company is listing the four pairs viz. BAND-USD, BAND-BTC, BAND-EUR, and BAND-GBP.
The 68th cryptocurrency by market cap of $150 million surged more than 40% in response to the listing announcements and is currently trading at $7.36 in green.
— Alex (@classicmacro) August 5, 2020
This is one of the top 15 DeFi protocols, which aggregates and connects real-world data to smart contracts. The band protocol enables smart contract applications such as DeFi, games, and predicted markets to be built on-chain without relying on a centralized oracle.
“Cross-chain data availability will accelerate DeFi and wider decentralized applications being built on Elrond, while off-chain data will open the door for a multitude of potent business applications,” said Beniamin Mincu, CEO of Elrond.
The Coinbase effect is flaky at best, no doubt, but they are skewed towards the broader market trend, i.e. bear market, choppy market, and euphoric ‘melt-up’ market, as Coin Metrics found in its report.
It is the last market trend that provides promising results, and we are currently in a market that is enjoying gains. So, it makes sense the tokens will benefit from Coinbase listing. The exchange has also taken to list altcoins at a rapid pace.
Coinbase’s latest list of potential coin listings that include Ampleforth, Band Protocol, Balancer, Blockstack, Curve, Fetch.ai, Flexacoin, Helium, Hedera Hashgraph, Kava, Melon, Ocean Protocol, Paxos Gold, Reserve Rights, tBTC, The Graph, THETA, UMA, and WBTC are poised for gains in anticipation of Coinbase listing, but the DeFi ones have even more potential for a bigger uptrend given all the DeFi craze.