Photo by Mariia Shalabaieva on Unsplash
For HNT holders who have endured more than their share of pain the last two years the 7 day HNT chart has been a breath of fresh air.
HNT is up 32% on the week and trading volume has risen 22% on the 24 hour chart. During the last month, the price of HNT has increased by 49.94%.
What is creating the the HNT token price appreciation ?
Simply put the Coinbase listing. When Binance the world’s largest crypto exchange removed HNT trading pairs and ceased taking HNT deposits on March 25 it removed liquidity from the market and HNT was only traded on some lesser known exchanges.
It seems ironic that Binance made the decision to delist HNT less than two months after the costly mistake they made with the HNT and MOBILE token.
Binance’s mix-up of Helium ecosystem tokens in September when an accounting bug saw the exchange allegedly lose around $19 million worth of crypto. It’s reported that Binance confused HNT with a much lower-priced token used by Helium to pay hosts of its 5G hotspot network called MOBILE and paid out around 4.8 million HNT, causing a massive sell-off of the token, temporarily dropping its price.
When Coinbase, the second largest crypto exchange in the world, made the announcement to support the HNT token beginning July 12 it was bullish news as evidenced by the big green wick upon listing.
Trading activity on Coinbase today is 97% buy and 3% sell. This simply measures the percentage of Coinbase customers who increased or decreased their net position in HNT over the past 24 hours through trading.
What is the significance of this metric ? Increased buying activity can signal that the asset is gaining popularity.
Due to the popularity of Coinbase new listings will tend to attract a rapid increase in trading volume which can help boost a tokens price. For tokens listed following an announcement, data shows that they give investors an excellent opportunity to buy low and sell high — an average of 43% in gains within the average six-day window.
Coinbase used to be much more secretive and offered little information about new upcoming crypto projects they intended to list on the exchange but recently they have become much more transparent and open. Coinbase will sometimes announce a new coin listing beforehand by updating customers through its social media accounts.
With the recent HNT listing on Coinbase it offers a much greater exposure for crypto investors to buy and sell the HNT token.
Kudos to Coinbase for basically giving the SEC the one finger salute by listing the HNT token in spite of increased regulatory scrutiny !
