In the cryptocurrency market, there are some key exchanges and marketplaces that have come to dictate and control adoption and liquidity for crypto projects. Going by trading volumes, Binance and Coinbase are the key exchange that most, if not all, crypto projects will like to have their tokens listed. The reasons are obvious: they bring liquidity, credibility and adoption to the project coin. Listing fees and project due diligence continue to limit the number of crypto projects that get to be listed. In a tweet, The CEO of Binance once bemoaned the emergence of shitty coins, implying that they won’t just allow any coin to get listed on their platform. See his tweet below
Simply put, they want cryptocurrencies that will also add value to Binance and be worth their effort. The same process and principles apply to Coinbase!
It is therefore not a meant thing for Coinbase to announce plans to list Algorand coin, the Algo, on its Coinbase Pro exchange. The trading pairs will be against the EUR and British Pound. Coinbase has its unique proposition in the crypto exchange market. It provides a bridge between fiat and crypto; making it easy for customers to buy crypto with fiat and also withdraw crypto to fiat. Secondly, it provides easy access to the European market and getting listed provides a great boost for project coin. Algorand will have a wider market and demand with this announcement.
Exciting also is the trading pairs. The EUR and GBP pairs is welcome and a boost to the token. This will surely boost the demand and adoption of Algorand as well as increase awareness about the Algorand project in total. I say this because Coinbase promotes projects on its blog which engenders credibility in the coin. The coin is not yet listed on Coinbase Pro but will go live on the 21st of August, 2020. For the past weeks, there has been a bull-run of the Algo crypto and this announcement has further boosted the token value. Just today, the Algo token has witnessed a surge in price, jumping from about $0.28 to 0.34 in less than 24hrs since the announcement was made. I can only assume so! You can see the price jump on Binance as at 20:00 GMT.
The value proposition of Algorand is enormous and it needs a wider community to support its growth. Recently, there has been a plethora of use cases (dapps) being launched on the Algorand chain. Its automatic daily rewards for holding Algos is something that sets it apart from other projects. You should closely monitor this and watch out for any promotion that Coinbase may run when the Algo coin is listed.
You can read the full announcement here.