Fantom and other newly considered Grayscale Altcoins are getting a Coinbase listing much sooner than we were expecting. How can we tell? Grayscale’s 2022 list of tokens under consideration for a trust fund has been updated, and not every token is listed on Coinbase. “Coinbase pump” incoming!
Only eight out of the 24 newly considered tokens are listed on Coinbase, meaning there’s a big spread that needs to be covered by Coinbase for the partnership to stay intact! And that might be a sign of what’s about to happen next. Let’s dive into why we think Grayscale assets under consideration are equal to an imminent Coinbase listing.
Grayscale is loyal to Coinbase
Coinbase is the pathway for every US-based institutional investor that seeks to gain exposure to cryptocurrencies, including Grayscale. Coinbase is a custodian for Grayscale, and its parent company, Digital Currency Group (DCG), also owns shares in Coinbase. Thus, Coinbase is the main platform that provides Grayscale with exposure to digital assets worthy of being included in the asset manager’s trust.
All tokens currently held by Grayscale Trust are listed on Coinbase. But that’s not the case for all the assets under consideration. During the Crypto Banter show, Ran highlighted 21 out of the 42 considered assets that are not part of the Coinbase family but could be included in the next platform listing. They are AR, BTT, BORA, CVX, DCR, EGLD, FTM, FLOW, GEL, HNT, HOT, IOTA, KAVA, XMR, NEAR, ROSE, RSR, SCRT, SAND, VET, and YGG
The 21 tokens not yet added to Coinbase contain projects incorporated in Grayscale’s consideration list either in 2021 or 2022 and have therefore yet to be blessed by the Coinbase Effect – the theory that digital tokens tend to have a major price pop post-listing on the Coinbase exchange. .
The Coinbase-Grayscale relationship reveals the big listing secret. A Grayscale Trust fund tends to be equal to a Coinbase listing because Greyscale utilizes Coinbase as their primary Altcoin custodian. So if the token isn’t listed on Coinbase but is identified by Grayscale for possible inclusion, this is a major clue that it will soon be listed on Coinbase, surely?
That means Fantom and the other 16 newly-added assets could be in line for a listing! How would Grayscale gain exposure to the asset if it’s not listed on the platform?
The Coinbase Effect is real! Tokens listed on Coinbase regularly pump as much as 91% in the first couple of days. It’s the reality, and every token that Grayscale is considering for inclusion in its trust could be listed on Coinbase, resulting in a significant price spike!
If history repeats itself and Grayscale identifies a potential Trust with tokens that are not yet listed on Coinbase, we will surely see Coinbase list it before Grayscale’s final decision. If a listing is imminent, it might be worth our while to gain exposure to some tokens that are not yet listed. But, as always, research any project for yourself before making any investments!