Coinbase Reveals Q2 Listings: What Changes?

The list contains 50 candidates, dominated by fewer know crypto projects.

Human hand opening up yellow curtain revealing glowing Coinbase logo.

The biggest U.S. crypto exchange, Coinbase, has announced a move towards higher transparency, disclosing 50 digital currencies that are under consideration to become officially listed on the platform in the second quarter of 2022.

The unveiled list contains 45 ERC-20 tokens on the Ethereum network, and 5 SPL tokens on the Solana network. Large market cap coins like Binance USD (BUSD), BitDAO (BIT) are among the potential candidates, but the majority are lesser-known crypto projects.

The decision was made “as part of an effort to increase transparency by providing as much information symmetry as possible”, Coinbase shared in its blog post. It also acts as a pilot for the communication of potential listings.

Information symmetry refers to a state in which all relevant information is shared between all involved parties. This means that none of the parties possesses more insider knowledge than others, thus allowing the market to expect a higher degree of fairness.

Exchange Listings Impact Prices

Listings on major centralized exchanges, like Coinbasehave historically always had an immediate positive impact on the asset’s price.

Coinbase applies strict listing policies, subjecting candidates to certain legal, compliance and technical standards, and having a large market cap or being a popular crypto does not automatically guarantee a listing on the biggest CEX in the U.S. 

Receiving a listing on such an exchange indicates higher trust levels in a certain asset, which automatically generates attention, popularity, higher demand, and finally, higher prices. 

According to research data, the value of the coins listed on Coinbase tended to grow by up to 50 percent immediately after being announced for listing.

However, the moment itself typically acts as a breaking point of the price rally, as the pump gets exhausted, leading to a steep price dump just minutes later. 

The Market Reacts

In the meantime, the crypto market does not seem to be celebrating Coinbase’s decision. 

Multiple users expressed their surprise at the exchange’s selection of tokens, and criticized the exchange for its choices. 

In addition to alleging ERC-20 token bias, crypto Twitter is wondering why Coinbase is planning to add never-before-heard-of tokens, but not popular, well-established assets like HBAR, CSPR, XDC and even XRP.

Others remarked, that the list of unknown coins seems like a “poorly timed April’s first joke or the sweet revenge by rogue woke employees”, which could even lead Coinbase to lose its listing reputation as a measure of quality and an unofficial vetter of crypto projects. 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Simona Ram

Simona Ram is a senior journalist at DailyCoin, based in Lithuania, who covers the forces and people shaping the Web3 industry and the areas where decentralized crypto assets meet the centralized world. She has experience in business communication within the financial sphere and has a degree in Foreign Languages, which helps her interact effectively with sources from diverse backgrounds. In her free time, Simona enjoys exploring new cultures.