Dozens of new coins appear on the crypto market every day, but 90% of them do not even live up to listing on large exchanges. These coins are lucky: they have already appeared on Coinbase Custody and may soon be listed on Coinbase / CoinbasePRO.
The Coinbase Effect in Action
The creators of new coins are trying to present their cryptocurrencies on one of the largest crypto exchanges, Coinbase, hoping for a rapid rise in the value of the asset. It has already been repeatedly noted that after the appearance of the coin on the Coinbase platform, the value of the coin could increase several tens of times in a short time.
The fact is that the exchange very carefully selects candidates for listing, making strict requirements for the founders of projects. This means that every coin that is presented on the site today has been tested by a whole team of specialists and is a quality product, and not a one-day asset.
Such a policy in the field of choosing coins is supported by the crypto community, and users themselves are ready to invest heavily in the project. Therefore, immediately after listing the coin on Coinbase Pro, the value of assets increased by 10% -200%. In the crypto environment, this is called the “Coinbase Effect”.
First, each coin goes to the Coinbase Сustody platform, and only then is it listed on the main platform. Currently, more than twenty new coins are traded on the custodian platform, which may appear on the main exchange in the near future.
The absolute leader with a capitalization of $ 4.122 million is the DOT token issued by Polkadot, which is currently trading at around $ 4.18 per share. The top five also included SNX (Synthetix Network) tokens - $ 4.19 apiece, FTT (FTX Trading LTD) - $ 3.53 apiece, ENJ (Enjin Coin) - $ 0.15 apiece and STX (Stox) - $ 0.004.
Let me remind you that recently Coinbase.pro added the YFI token to its platform, which showed a record price increase.
One-sided policy and work for results
Coinbase.pro crypto exchange is indeed a kind of springboard for cryptocurrency startups. And in many respects this is the merit of the founder and CEO of the crypto platform Brian Armstrong, who in 8 years turned the crypto exchanger into a global cryptocurrency exchange. However, Armstrong's policies and attitudes towards staff are criticized in the crypto community.
Despite the fact that the exchange is completely controlled by the company and the US authorities, Armstrong urged employees to refrain from political discussions. Those who disagree can write a letter of resignation of their own free will.
Armstrong also stressed that Coinbase will continue to be "apolitical" and will not discuss "wider social issues" with its employees. The head of Coinbase urged those who disagree with the company's mission to resign, because "life is too short to work in a company you do not like." The decision must be made before October 7.
This message caused a flurry of criticism, and some even recommended that Armstrong himself leave the post of the head of the company.
