One of the biggest digital asset exchange Coinbase is going to add a range of new tokens, including top DeFi projects.
As Coinbase announced on its blog post today, the San Francisco-based exchange is considering offering new trading options and adding 18 new tokens to its system.
The list of new coins will include tokens like Aave (LEND), Aragon (ANT), Arweave (AR), Bancor (BNT), Compound Coin (COMP), DigiByte (DGB), Horizen (ZEN), Livepeer (LPT), NuCypher (NKMS), Numeraire (NMR), KEEP Network, Origin Protocol (OGN), Ren (REN), Render Network (RNDR), Siacoin (SC), SKALE Network, Synthetix (SNX), and VeChain (VET). The exchange, however, announced that it is not exploring the support to Siafunds (SF) yet.
Coinbase is exploring the addition of 18 new digital assets, some are live, some are not. We will evaluate each against our Digital Asset Framework. It’s our goal to offer support for all assets that meet our standards and are compliant with local law. https://t.co/IN4g4WfYjW— Coinbase (@coinbase) June 10, 2020
In the meantime, Coinbase did not specify the exact time when the new listings will be added. However, the company claimed that its decision to support new assets requires regulatory approval in some jurisdictions. As states the report:
We will add new assets on a jurisdiction-by-jurisdiction basis, subject to applicable review and authorizations. The omission of assets from this publication does not disqualify any such asset from active review and potential listing.
The recent list of Coinbase contains tokens of top decentralized finance (DeFi) projects like Aave, Bankor, Compound, and Synthetix. Since the whole sector of DeFi is currently booming, the report from DeFiMarketCap came out earlier this week, showing that DeFi market capitalization exceeded $2 billion, growing by $1 billion in two months’ time.
Token prices grow after listings
The support from one of the biggest digital asset exchanges historically had a positive effect on token prices. The new tokens usually see a surge in their prices shortly after the listing on the exchange.
The most recent example could be the MakerDAO (MKR) token. Since Coinbase confirmed its listing on the last days of May, the token’s price surged from $345 to $525 within two days. Furthermore, after the official listing on June 8, MKR made another move further and reached $702 on June 10.
The pattern is seen as well with the OMG Network (OMG) token, which was added to Coinbase on May 18 this year. The coin, which was worth around $0.94 at the time, shot to $2.00 in less than a week after listing.
Reputation crisis continues
In the meantime, Coinbase is still raising controversy across the crypto community. The exchange fell into scandal a few months ago after the official documents appeared, confirming that Coinbase is selling licences for its analytical platform Coinbase Analytics to governmental institutions like the US Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS). The blockchain analytics software provides regulatory institutions with the ability to analyze private data of Coinbase users’ transactions.
Although the company denies accusations, the number of clients are expressing their dissatisfaction by foot and keep withdrawing from the exchange.