Coinbase, the largest cryptocurrency exchange will be putting forward a lengthy token list, possibly in the 2nd quarter of this year. it is an effort by Coinbase to increase its transparency.
The crypto exchange also revealed in the blog post the list of the tokens being considered and also noted that there could be other tokens under contemplation but have not been mentioned for now.
The tokens that are being considered include 45 tokens of ERC-20 from Ethereum and 5 SPL tokens from Solano.
Tokens having a larger market capitalization include Binance USD, the 3rd largest stablecoin present in the market. There is also BitDAO (BIT), which is among the larger DAO projects. It vaunts a market capitalization exceeding $1B.
Coinbase Has Stated Its Token List Will Lead To Extra Info Symmetry
The company has revealed that its decision to announce the list of tokens will lead to more information symmetry. It will help promote market fairness and efficiency.
Information symmetry will also bring down the chances of creating a buying frenzy to jack up prices before dumping it on the day of listing. This frenzy connected with retail trading can be controlled through advanced knowledge of any listing.
Though this scenario is more common on other exchanges, the company also has seen such action on its listed coins. OMG Network was up 200% in 15 minutes as it was registered on the exchange in 2020, only to crash minutes later.
Cryptocurrency projects know of the potential attention brought about by a listing on Coinbase, even the potential for listing turns the focus on it.
BigData Protocol, a comparatively smaller decentralized finance data tokenizer, with a market cap of $3.3M, revealed with delight that it was being considered for listing on Coinbase.
But though the improved transparency is considered a boon by projects and investors, experts discern lackluster potential listings. But investors could have missed out on the new efforts at transparency by Coinbase.
It has been a stormy week for Coinbase as its Indian trading services were stopped under pressure from payment service regulators.