Posted on

ZCash (ZEC) Price Disappointment Indication Coinbase Losing Steam?

Coinbase, Cryptocurrency, ZCash (ZEC)–On November 29, in a move that was somewhat surprising given the state of the crypto markets, popular U.S. based exchange Coinbase announced upcoming trading support for ZCash (ZEC).  While Coinbase had previously made waves with an update about adding five new currencies to the exchange, the company has been painfully slow in following suit.

In July, after going months without adding a new coin for investors to buy or sell, Coinbase teased its thirteen million customer base with news of potential listings. Included in the offering were Basic Attention Token, 0x, ZCash, Cardano and Stellar–a decent spread that had investors bubbling, particularly over the potential of the latter two. Aside from adding support for Bitcoin Cash in December 2017, whose market cap was largely propped up due to splitting off from the number one cryptocurrency market cap, it was a welcome change to see Coinbase targeting such high profile coins. Cardano’s ADA, the tenth largest token, and Stellar XLM, fourth by market cap, have made waves in their respective sectors by garnering attention from large company players. Cardano’s crew made a visit to Google’s offices earlier in the year, while Stellar has built ties to computing mainstay IBM and a rumored partnership with social media giant Facebook which was later denied.

However, of the original five currencies detailed in the Coinbase report, Stellar and Cardano are the two to so far not make the cut. Which has led investors to wonder whether an ADA and XLM addition is inevitable at this point, or if Coinbase is waiting for a more opportune moment. Given the somewhat disappointing price movement for ZCash earlier in the week, it’s fair to question whether the once massive hype surrounding a Coinbase addition is waning before either coin can make the cut.

While ZEC did jump 17 percent immediately following the announcement, the coin failed to hold its gains longer than twenty-four hours and has since receded back to the price level pre-announcement. In some respects, Coinbase’s shift in handling the process of new coin additions to the exchange is working: rather than creating a massive bull run and bust (like the Bitcoin Cash fiasco which led to the company being accused of insider trading), the price movement for ZEC was relatively pedestrian.  For the exchange and its commitment to growing its asset class in a way that is ethical to the market, the modest price movement might represent a win. 

However, it could also likely be a combination of investor fatigue as we near the end of 2018’s bear cycle and the culmination of two of the worst weeks for crypto valuation in conjunction with people moving past the fixation of a Coinbase listing. In January, after riding the wave of Bitcoin’s bull run, XRP shot to $3.80 per coin largely on the rumors of a looming Coinbase addition. When that rumor was proved to be false by the exchange, the price quickly plummeted and has since receded throughout the year.

Coinbase, at one time, had the potential to greatly impact the price of a coin by opening it up to the more casual, mobile-based crypto investors who trade within the limited confines of the exchange. But if recent price movement for ZEC is any indication, an eventual listing for Cardano and Stellar may fail to have the sort of price impact most investors would prefer to see.

The post ZCash (ZEC) Price Disappointment Indication Coinbase Losing Steam? appeared first on Ethereum World News.

Posted on

Coinbase Exploring Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX)

Coinbase, Cryptocurrency Exchanges–Finally, after months of waiting for news surrounding another coin listing, Coinbase has broken the silence on updating its limited selection of cryptocurrencies. In June, Coinbase announced to consumers through a blog post that the company would be adding Ethereum Classic (ETC). However the listing functioned more as a reprisal for Coinbase, which had previously offered ETC before discontinuing the service at the end of 2016. The move back to ETC represents a testing ground for the company rather than an actual new coin launch, as the exchange looks to avoid another Bitcoin Cash fiasco which led to allegations and lawsuits surrounding insider trading.

Today, the popular U.S.-based exchange with over 13 million users announced their exploration into five new cryptocurrencies:

Cardano (ADA)

Basic Attention Token (BAT)

Stellar Lumens (XLM)

Zcash (ZEC)

0x (ZRX)

The official press release states that in addition to exploring the currencies and regulation entailed, the exchange is considering the coins for addition to their service,

We are exploring the addition of several new assets, and will be working with local banks and regulators to add them in as many jurisdictions as possible.

In addition to the current listing of Bitcoin, Bitcoin Cash, Litecoin and Ethereum, Coinbase looks to capitalize on rival exchanges in offering a broader selection of assets to its userbase. While Coinbase revenue eclipsed 1 billion USD in 2017, the majority of their margin came in the month of December, when crypto trading volume reached a frenzy. Following the news of Binance posting 300 million USD profits through the first half of the year and eyeing a billion by the end of 2018, Coinbase has likely seen expanding its selection as a way to keep up with the competition while spurring greater trade-interest among its massive consumer base.

There are a few takeaways from the announcement worth reviewing:

Coinbase is making it clear that there is no guarantee in listing.

Following the Bitcoin Cash fiasco, Coinbase is taking a measured approach to doling out news related to updating their coin selection. In the case of BCH, Coinbase had announced months ahead that they would be supporting the coin at some point in the near future, without giving specific dates. However, the pump in BCH pricing in the 24 hours leading up to Coinbase’s listing led many users to cry foul over allegations of insider-trading, essentially accusing Coinbase employees of buying BCH in the interim period. By announcing multiple coin listings, in addition to providing subversive language about the nature of partnering with these currencies, the exchange is effectively trying to cloud an exact date for the listing and thereby avoid the previous nuisance of the coin dumping in price upon launching on Coinbase.

Regional Specific.

In addition to being vague on its commitment to listing the coins, Coinbase specifically states that not all currencies may be available to all regional customers within the same period of time. Which means, Coinbase is free to experiment with listing a currency on their exchange–thereby figuring out the kinks in their launch and creating a smoother user experience–prior to exposing the coin to the millions of customers located in the U.S. This gives Coinbase further leeway in implementing the new crypotcurrencies as, again, the Bitcoin Cash situation proved that the exchange was not prepared for such high volume. Besides causing the price of BCH to skyrocket to 3900 USD before plummeting back to 2800 USD in the span of hours, the Coinbase listing crashed GDAX trading for nearly a day, with BCH specific trades withheld even longer. The aftermath of the coin launch has given Coinbase clear indication that they are better served trialing their coin to a smaller audience, before giving it to the masses.

While the Coinbase announcement represents momentous news for the aforementioned cryptocurrencies–effectively exposing them to millions of new customers who have yet to venture outside of the user-friendly Coinbase exchange–the company is likely planning more nuance and subversion in the listing than we previously saw with Bitcoin Cash. Look to the upcoming Ethereum Classic launch as an indicator for how things will go with these new tokens, as Coinbase seeks to rectify the mistakes of last years BCH mess.

loading…