In a continuation of good for crypto asset , recently announced the listing of XLM on its platform. Markets reacted positively to the , with a 4% increase against the Dollar, but similar to recent listing on the platform; investors were left feeling somewhat disappointed.
Is this further confirmation of ’s diminishing influence? Or, were past pumps the result of market manipulation?
To be fair, a good amount of followed similar movements…
Also, the listing pump appears basically dead. initially jumped 7%, now sitting around 5% above the announcement level. Nothing to write home about in crypto land
— Crypto Bobby (@crypto_bobby)
Coinbase Making All The Right Moves
2018 proved to be an outstanding year for . For instance, rumors of an imminent IPO circulated when they a successful round of investment fundraising to the tune of $300 million – which puts a valuation of $8 billion on the company. They said the money would be spent on building out fiat to crypto infrastructure. But were quick to quash suggestions of a public offering by saying:
“we would always remain a crypto-first company.”
Ventures, their investment division, also invested in several startups last year. This move brought , , , and on board, adding data and API specialism to their portfolio. But perhaps most significant was their collaboration with technology company to develop the USDC stablecoin. USDC has since made great strides in a short amount of time. Circle CEO, Jeremy Allaire celebrated its achievements at the end of last year by signaling his ambition to overtake Tether. And with leading exchanges including Bitfinex, KuCoin, , Poloniex, and Korbit listing the coin, 2019 holds great promise.
USDC hits $250m issued in just months. Great end to 2018. Here’s to becoming the top stablecoin in 2019!
— Jeremy Allaire (@jerallaire)
Retail Investors Not Forgotten
Aside from the corporate goings-on, retail investors can now make instant withdrawals to PayPal. Also, with the introduction of , users get rewarded for learning about crypto. This move recognizes that lack of knowledge is a significant barrier to crypto uptake. Earn addresses this by incentivizing users. They say:
“The idea is for users to understand more about an asset’s utility and its underlying technology, while getting a bit of the asset to try out.”
At the same time, the expansion of their product offering has seen the addition of BAT, BSV, CVC, DAI, DNT, ETC, GNT, LOOM, MANA, MKR, XLM, XRP, USDC, ZEC, ZIL, ZRX to the lineup. With an on-going assessment to add more. has publicized its plans to eventually incorporate almost all assets that meet its criteria for security, compliance, and vision. This brings welcome to users, who were previously frustrated by the lack of choice on offer. In a statement, they said:
” Over time, we intend to offer our access to greater than 90% of all compliant digital assets by market cap.”
Furthermore, , which is already available in 33 countries, has rolled out support for six new European jurisdictions. Those being Andorra, Gibraltar, Guernsey, Iceland, Isle of Man, and Lithuania. However, users in those countries do not have access to Pro functions at present. Nonetheless, this indicates a serious intent to broaden its global presence and become a more influential player.
Coinbase Remains Influential But Not on Price
While the crypto landscape has changed dramatically since the start of the bear market, for example in a much-reduced market cap, remains at the forefront of development from both an institutional and retail perspective. But, as seen with the recent listing of XRP and XLM, this no longer translates into a surging price.
For one thing, many people still cling to the simplistic notion of a positive correlation between price and availability. However, in the present, there now exists multiple confounding factors that skew this relationship. For example, those remaining in a bear market tend to be knowledgeable and support the fundamentals of what crypto is trying to achieve. Whereas back in May 2017, when Coinbase listed Litecoin, triggering a 40% in price against bitcoin, not only did fewer exchanges exist, but the average investor was merely out to make quick money in what seemed like a frenzied free-for-all. In short, the hit and run investors have gone. While unfortunate for liquidity and volume, Yaniv Feldman of One Alpha sees this as necessary for long term prosperity:
“The December 2017 and January 2018 boom and bust had a cleansing effect on the ecosystem, removing many of the speculators and leaving mainly real investors, operators, and builders in the market. This is what was necessary to move forward and build a successful ecosystem.”
What Does Coinbase Bring to the Table?
“There are a few things that happened at the same time. I am sure if that happened a year ago, that wouldn’t be a problem at all, a year ago there was a lot of free money in the market. But in a bear market there’s a change.”
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Market Manipulation
On a more unsavory note, accusations of insider and market manipulation plague the industry. A study by of the University of Texas claims that much of ’s epic price rise at the end of 2017 was due to manipulation. He examined millions of transactions on Bitfinex and noted that Tether was used to buy at critical moments. This helped to stabilize the price when the market was heading for a fall. Griffin said:
“It was creating price support for , and over the period that we examined, had huge price effects. Our research would indicate that there are sophisticated people harnessing investor interest for their benefit.”
is no stranger to complaints of manipulation. Numerous claims have been filed against the exchange, with the most recent focusing, once again, on employees profiting from the recent XRP listing. With that in mind, it’s conceivable that past listings were also subject to massive manipulation by “sophisticated people.” And what we see in the present, a diminishing effect, is indeed how markets react when the “sophisticated people” have left
.
You want a crypto market without manipulation ?
Start with this, share this daily and tag and added LTC – Charlie Lee ex employee
They added BCH – insider
They added 0x – 3 ex employees
1/2— XRProphet ⚡️ (@XRPprophet)
Diminishing Coinbase Effect
runs an impressive operation, and by all accounts will continue to grow. But investors should no longer expect surging prices following a listing on their platform. The market conditions do not support this, whether that is because the golden era has passed, or as a result of high-level market manipulators departing or even a combination of factors is up for debate.
Published at Fri, 15 Mar 2019 15:19:05 +0000
