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Coinbase Listings Boost Altcoin Prices, but There Is One 'If': Coinmetrics

News
Tue, 06/23/2020 - 13:52
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Vladislav Sopov
The Coinmetric team, which works in cryptocurrency statistical analysis, revealed a report on the impact of a popular token price catalyst, the 'Listing Pump'
Coinbase Listings Boost Altcoin Prices, but There Is One 'If': Coinmetrics
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Jon Geenty of the CoinMetrics team showcased why we shouldn't overestimate the impact of Coinbase listing announcements on altcoin performance.

Always keep market sentiment in mind

Mr. Geenty compared three preliminary listing announcements, i.e. posts about the 'exploration' of new assets. The Coinbase team posts announcements of this type to reveal that new coins are under evaluation for listing.

The analyst decided to take an announcement made in a bearish market (in late 2018), a 'flat' market (Summer, 2019) and one which was unveiled this June. 

He studied the performance of all of the assets subject to exploration against the U.S. Dollar, Ethereum (ETH), Bitcoin (BTC), Monero (XMR), ZCash (ZEC) and Dogecoin (DOGE) to avoid distorting any trend in the performance of benchmark assets. In 2018, every to-be-listed asset demonstrated relatively pale gains.

Coinmetrics: No 'listing pumps' on bear market
Image by Coinmetrics

The weakest performance demonstrated by the assets in question occurred after the announcement in 2019. The choppy flat of the Bitcoin (BTC) price and the overall market uncertainty erased almost every 'pump' gain that didn't surpass 10% against USD, Bitcoin (BTC) and Ethereum (ETH).

To compare, the last announcement appeared to be a real catalyst. The assets rallied against every benchmark in a matter of days. However, even with this beautiful perspective, the trendy OMG Network Token (OMG) pump looks like an outlier.

2020 announcement resulted in prominent pump
Image by Coinmetrics

Still a good indicator

All in all, the 'Coinbase listing pump' still looks like a reliable representation of short-term runs for the majority of assets. Typically, the price of a token surges by up to 14% against the U.S. Dollar.

Traders should act quickly to take profits from this process. As revealed by this report, most of the time, all gains are mitigated within a 20-day period.

As covered by U.Today Crypto News, the last Coinbase 'exploration' announcement was slammed by Bitcoin (BTC) proponent Max Keiser of Russia Today. He accused the exchange of a 'casino'-like approach and suggested it should be regulated like a gambling platform.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

News
Fri, 10/23/2020 - 09:24
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Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
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Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)