The Price Disappointment Of ZCash Could Be A Sign That Coinbase Is Losing Steam
On November 29, in a move that surprised many due to the bear market in crypto, Coinbase announced they would support ZCash (ZEC). While Coinbase has made waves in the past by saying they will add five crypto coins, the company has been slow to implement.
In July, after months without adding any coin, the exchange teased that it was planning to add some new coins. This announcement had the crypto investors excited especially when Cardano and Zcash were mentioned.
Besides adding BCH support in December 2017, whose price was helped by it being a fork of the number one crypto, it was nice to see Coinbase target these coins. Cardano is currently the tenth largest crypto coin by market cap.
The other coin announced was Stellar XLM, which is the fourth largest by market cap. The Cardano team visited Google at the start of 2018 while Stellar has ties with IBM. Stellar is also rumored to start working with Facebook, although the claim has been denied.
Of the five crypto coins mentioned by Coinbase, Stellar, and Cardano are the only ones not to make it. This has left investors wondering whether XLM and Cardano ADA are next in line. Given the disappointing price of Zcash, despite addition to Coinbase, it has left many questions in the minds of investors. Many now wonder whether Coinbase still holds the same power it did to push up prices once they added a coin.
Following the addition, ZEC prices spiked by 17 per cent. However, those gains did not hold for more than 24 hours. Since then, the prices have dropped back to the pre-announcement levels. Coinbase has also changed how they add coins to the exchange. This is unlike the Bull Run and bust that followed the addition of BCH, which led to accusations of insider trading. Price movement for the ZEC changed little. For the exchange, which is committed to growing its crypto assets ethically, this is a win for them.
Despite this, it might be a sign that investor fatigue and the bear cycle have affected the crypto world. Besides that, it might be a sign that people have moved beyond their Coinbase fixation. For instance, the XRP coin shot to $3.80 based on rumors that it would soon be launched on Coinbase. When the exchange denied the claims, the price plummeted immediately and has continued to fall since then.
Waning Influence Of Coinbase
Coinbase could at one time change the price of a coin by merely talking about it. When they would drop the coin on the exchange for casual mobile-based investors, its price would shoot up. However, the recent price movement of the ZEC shows that this is no longer the case. It might be a sign that when XLM and ADA are listed, it will not have any effect on the price. This might be a good thing since it is in line with the goals of the crypto world to get rid of centralization.