Coinbase has announced that it will now support the Circle stablecoin USDC. The cryptocurrency exchange announced on a blog post that the coin had begun trading yesterday, the 23rd October. The move is significant as it is the first time Coinbase has shown support for a stablecoin and it also comes only a week after tether had seen a panic spike lower as traders continue to question the legitimacy of the coin’s 1:1 peg. The addition of USDC could be seen as a vote of no confidence in tether. This follows news last week that Binance was expanding its stablecoin offerings to four.
The underlying technology of the USDC coin was actually co-developed by Coinbase and Circle under the CENTRE banner.
The company’s blog stated, “The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system.”
USDC will also be added to the Coinbase Pro platform in coming weeks. The stablecoin already supported on the Coinbase Wallet, which supports ERC20 tokens.
The move to a stablecoin is a further sign that Coinbase are becoming more aggressive in their listing policy. Competitor exchanges have wider offerings and competition is heating up in th ecryptocurrency space.
In a recent article we highlighted the “Coinbase effect” that led to a 30% rally in 0x after it was officially listed on the cryptocurrency exchange.
The Coinbase rally and the rumour rally that preceded it led to big gains for 0x speculators. We mentioned that 0x was spotted on the exchange’s reporting section days before the coin was announced for Coinbase Pro. The rally seen in 0x has led to another bout of FOMO and the four coins that we noted in our article are all showing gains today.
Coinbase had previously mentioned that they were exploring the possibility of five coins. These coins were: Stellar Lumens (XLM), Basic Attention Token (BAT), Cardano (ADA), ZCash (ZEC) and of course, 0x (ZRX). The four remaining coins are likely seeing gains from speculative buyers who are hoping to predict the next listing rally.
Coinbase has recently adopted a new listings policy, which allows project founders to complete an application form to be considered for a potential listing. The move came following criticisms over the previous selection policy, requests from users that they wanted more coins to trade, and more importantly to catch up to the growing competition from rival exchanges. With a new improved listings policy and a lofty valuation to keep up with, you can expect to see another coin listed more quickly than they have in the past.
0x has surged 30% after the token officially started trading on the Coinbase exchange.
The move had started last week with rumours of an addition for 0x and I noted in a previous article how Coinbase users had spotted ZRX listed in the reporting section of the Coinbase platform. This was followed by the initial rally to the $0.75 level. I noted then that, “Key resistance for ZRX will be around the $1.25 level.”
The price has blasted through the $1.00 level today but has since retreated to $0.98. There is potential for a follow-through rally and above $1.25 we have resistance at $1.75 and $2.25. Above the $2 level there is little resistance to stop a bull run in 0x. Today’s move will have been powered by large investors on the Coinbase exchange who wanted to diversify into ZRX and its $500 million market cap. The move on the “Coinbase effect” has propelled 0x to number 22 in the rankings, only $60 million short of ZEC in twentieth place.
It should also be noted that when Coinbase were “exploring” the option of another coin it considered Stellar Lumens (XLM), Basic Attention Token (BAT), Cardano (ADA) and ZCash (ZEC). Traders should keep an eye on the reporting section aagain as Coinbase may follow up with another of those coins more quickly than they have done previously. The last coin added to Coinbase was Ethereum Classic in July, however the company has faced calls from users to add more coins and there is also growing competition in the exchange market so the company will not want to be left behind, especially after the company received further investment of $500 million from Tiger Global, in a deal that saw Coinbase valued at $8 billion.