CELO token skyrocketed after Coinbase Pro cryptocurrency exchange announced it will be listed on the trading platform.
Coinbase Pro, one of the biggest crypto exchanges in the United States, revealed yesterday it will start listing CELO tokens on Monday, August 31. The trading is said to start the following day.
On Mon, Aug 31, our CELO-USD, CELO-BTC, CELO-EUR & CELO-GBP order books will enter transfer-only mode, accepting inbound transfers in supported regions. Orders cannot be placed or filled. Trading will begin on or after 9AM (PT) the following day, if liquidity conditions are met.
— Coinbase Pro (@CoinbasePro) August 26, 2020
CELO is the native utility and governance token for the blockchain open platform Celo, which aims to provide financial services via mobile devices. The platform allows paying and storing stablecoins that run on Celo even for those who do not have cryptocurrency wallets.
The price of the CELO token skyrocketed soon after the fact was announced. The token increased over 50%, climbing from $2.93 up to $4.46 in less than an hour, shows the data of CoinGecko. The coin reached its all-time high with this price mark and tested it twice a few hours later. The trial however ended unsuccessfully and led to nearly 9% drop to the price of $4.02 at the time of publishing.
According to the Coinbase report, the CELO token will be traded in four pairs, which include trading against Bitcoin, the US dollar, Euro and Great Britain pound. As stated, the launch on the trading platform will be split into four phases, from depositing to full trading functionalities.
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The exchange also confirmed it owns part of the CELO token as a result of the 2018 investment into the blockchain project. As it is known, Coinbase Venture is a member of Celo’s Alliance for Prosperity, that aims to make social changes by promoting financial inclusion through blockchain technology.
CELO is not the only token that has increased impressively hours after the similar Coinbase announcement. The support from one of the biggest digital asset exchanges historically had a positive effect on token prices. The most recent example of Numeraire (NMR) token supports the so-called Coinbase effect, the phenomenon when the asset’s price increases sharply after the listing announcement. A few weeks ago the newly listed Numeraire (NMR) token shot up nearly 200% during the first six hours of trading, according to CoinGecko.
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The growth pattern has also been seen within the price charts of other tokens like Band Protocol (BAND), whose listing announcement was made on August 6. The effect was highly visible on the Compound Coin (COMP) price, which grew six-fold from $62 to $372 within the first days of trading on Coinbase Pro cryptocurrency exchange this June.
