If you have been following price actions in the crypto space since late 2017, then you’ll agree that the crypto market reacts either positively or negatively to news from major players within the space. Rumors of regulation is South Korea and a ban of cryptocurrencies in China were met with a sharp decline in the overall market cap last year. Similarly, rumors of Ripple XRP being added to Coinbase by January this year saw the cryptocurrency rise to almost $3 in December, last year. Still talking about some price actions, the prices of Ethereum, Litecoin, and Bitcoin Cash all increased after being listed on Coinbase.
The San Francisco-based crypto exchange, Coinbase recently announced the possibility of adding five new coins to their website. According to an official blog post on July 13, the new assets that may be added to their trading list includes, Cardano (ADA), Stellar Lumens (XLM), Basic Attention Token (BAT), ZCash (ZEC), and 0x (ZRX). The exchange also noted that they are working with local banks and regulators to add digital assets to as many jurisdictions as possible. This will further increase their customer base.
As expected, this announcement has triggered an increase in the prices of the 5 cryptos. ADA and XLM have increased by over 8% in the last 24 hours, and BAT, ZEC, and ZRX are up by over 10%. The same thing happened in June, when Coinbase announced that it will soon support Ethereum Classic (ETC). The price of ETC went up by over 25%, and the exchange has hinted that plans to integrate ETC is going as planned.
Just a quick one on these price actions. A lot of people will probably FOMO (fear of missing out) in. If you ask me, this is not the right time to jump onboard, if you haven’t already done that. While this is not a financial advice and shouldn’t be a rule on whether you invest or not, from experience, the market it probably going to correct in a few days. That’s the point you should get in (after the correction) and hope that Coinbase delivers on their promise soon.
Coinbase has noted that their announcement does not in any way guarantee that these new assets will be listed for trading. Some of the tokens may be available only for buying and selling, and there may be no dedicated local wallet. In their words:
“We may also only enable certain ways to interact with these assets through our site, such as supporting only deposits and withdrawals from transparent Zcash addresses. Finally, some of these assets may be offered in other jurisdictions prior to being listed in the US… some of these assets may become available everywhere, while others may only be supported in specific jurisdictions.”