As most of us know Coinbase has recently announced that they will be exploring the addition of some new tokens to the platform. So why did these coins not pump 15-20% upon announcement? There are a few reasons. Allow me to explain...
Reason # 1( Speculative)
Unlike many Coinbase announced listing the current announcement is only "exploring" the addition of the cryptocurrencies Cardano(ADA), Basic Attention Token(BAT), Stellar Lumens(XLM), Zcash(ZEC), and Ox(ZRX). Therefore there is no definitive listing of any of these tokens by Coinbase in the future. Purely exploratory, and no guarantee.
Reason #2 (Restrictive)
Coinbase has also gone on to explain that even if any of these tokens do get listed they may be subject to certain restrictions as well. These can include buying and selling only without the addition of a local Coinbase wallet to hold tokens. Other restrictions can include deposits and withdrawals , and jurisdiction making tokens only available in specific geographical locations.
Reason #3 (More Tokens = Less Movement)
The more coins or tokens that get added to Coinbase the less the demand for price movement. When the options on Coinbase were limited to a few there was no choice but to have money flow heavily between those limited channels. With the addition of more tokens all that is created is lower price action because there are a multitude of channels at a lower price and therefore less pump.
Historically the announcement of a new listing on Coinbase tells us the token will spike in price, but maybe with the addition of too many the token becomes a lot less "special" all of a sudden and that spike we were expecting is a mere blip on the radar
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Nothing but my own personal opinion here, but ZRX (0x) is a project that I invested in weeks ago, purely on fundamental research. One of the elements of that research that I took into consideration for many coins/tokens was possibility to be added to Coinbase. While I am no pro trader by any means, and just a small time investor, crypto hobbyist, I can finally say now that fundamental research has brought a ray of light amid the bearish darkness of market sentiment at the present time. Also I should point out that the entire time that I've held ZRX, there have been many times I was tempted to Tether when it was hitting peaks, and looking back, it's about split, where half the times, had I done so, I'd have been able to buy in lower, but the other half of the time, had I Tethered, I'd have missed out on a significant rally. Thus I'm fine with the HODL strategy for now. ZRX is already a solid project, with or without Coinbase adding it at any point, so even if Bitcoin has another dive, it should come back that much stronger on the other side. Just my 2 satoshis. Enjoy your day.
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