Coinbase Increases Transparency For New Listings In Roadmap

Coinbase increases transparency when it comes to new listings in its Q2 Roadmap as we are reading more in today’s coinbase news.

Crypto exchange Coinbase unveiled a list of tokens that they are considering listing in Q2 of 2022. there could be up to 50 new tokens listed on Coinbase which is the biggest exchange in the USA. According to a new blog post from the platform, Coinbase increases transparency for listing new assets and published the list as a part of the efforts to boost transparency.

As part of an effort to increase transparency we want to communicate the assets under consideration for listing in Q2 2022 (April 1st, 2022 to June 30th, 2022). Changes to our roadmap will be updated on this blog post regularly https://t.co/zu1IBdrD7X pic.twitter.com/cBRYe47E2m

— Coinbase Assets (@CoinbaseAssets) April 11, 2022

There are a total of 45 ERC-20 tokens on the list including projects like Binance BUSD which is the third biggest stabelcoin that has a market cap of $5 billion and BitDAO as well. Coinbase referenced five SPL tokens issued on the SOL network a month ago and the exchange added more support for the blockchain to the Coinbase wallet browser extension. The San Francisco-based exchange noted that this is not an exclusive list of the assets under consideration and that it could list other assets that are not mentioned in the blog post.

Coinbase added that some of the assets could be listed with the Experimental Label that is applied to lesser-known tokens or some that have low trading volumes. By publishing the list of assets under consideration, Coinbase aimed to minimize the chances of the pump and dump scenarios. In the past, the token listings brought bigger price movements than on other exchanges which became known as the Coinbase Effect. Roberto Talamas who is an analyst at Messari wrote:

“The ‘Coinbase Effect’ has become a well-known phenomenon having positive effects on asset prices when new listings are announced.”

According to Talamas, the economic rationale behind the effects is quite simple. When the crypto Is listed on a popular exchange and gets bigger exposure to a new set of market participants, it is normal to react. For example, the Coinbase Effect was on full display in September when the exchange-listed SHIB prompted the meme coin to surge 11% in an hour and 38% the next day. The Coinbase effect was short-lived however as the coin retraced to pre-listing prices.