As a seasoned crypto investor with years of experience navigating the volatile and dynamic landscape of digital assets, I can attest to the significant impact exchange listings have on projects and their tokens. I’ve witnessed firsthand the power of visibility that comes with being listed on high-profile exchanges like Coinbase.
Crypto entrepreneur Justin Sun took to X to mention the huge fee that American cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) charged to list TRX, the native token of Tron. He took this step after Brian Armstrong, Coinbase CEO, went on X to address the bottlenecks in listing assets on Centralized Exchanges (CEXs).
The Justin Sun Claims about Coinbase
Lately, there’s been a lot of discussion about the hurdles experienced by promising ventures, particularly those aiming to list their tokens on prominent exchanges like Binance. This was brought up by Simon Dedic, CEO of Moonrock Capital, as he disclosed a project that found it challenging to secure a listing.
In response to these painful conversations, Armstrong stated that asset listings on the Coinbase exchange are completed at no cost. He even advised Dedic to drop a note through its asset hub for assistance.
Dedic is connected to a high-profile project which has just been listed on Binance following a year of thorough evaluation. However, Binance has asked for a 15% listing fee from the entire token supply, an amount valued between $50 and $100 million. Given this substantial cost, Dedic has expressed his disapproval, arguing that such exchange listing fees are prohibitively expensive.
The CEO of Moonrock Capital believes these events are responsible for the market’s downturn, as depicted by the falling graphs. While Armstrong attempted to portray Coinbase favorably compared to Binance, Sun soon clarified to the public that they were essentially similar.
The creator of Tron claims that Coinbase charged 500 million TRX (worth $80 million) for listing TRX on their platform, while demanding a $250 million Bitcoin deposit in Coinbase Custody to improve performance. In contrast, Binance, the leading cryptocurrency exchange, didn’t require any payment for listing the same token.
Binance charged us $0.
To enhance their performance, Coinbase asked us to make a deposit of 500 million TRX (equivalent to $80 million) and an additional $250 million worth of BTC, which should be held by Coinbase Custody.
Lots of respect. But this is simply not true.
— H.E. Justin Sun🌞(hiring) (@justinsuntron) November 4, 2024
Coinbase Listings Trigger Token Growth
Listing a project on cryptocurrency exchanges plays a vital role in launching and promoting both crypto projects and their associated tokens. These listings enhance visibility for digital assets, which can be crucial for attracting attention and investment. Despite debates about the fees charged for listings, it’s important to acknowledge that Coinbase has assisted numerous cryptocurrency projects by providing them with listing opportunities throughout its history.
Approximately a year ago, the significant trading platform added Solana-based meme token Bonk to its listings. Notably, within just 24 hours after listing, the price of this meme coin experienced a remarkable surge of nearly 40%. By July 2024, it was announced that Coinbase would extend support for Stader (SD), the main cryptocurrency of the Stader Labs platform. This announcement led to an impressive 50% increase in the price of SD as well.
Approximately two months ago, Coinbase included Zetachain (ZETA) and Across Protocol (ACX) in its plans. The architecture of Zetachain is robust, allowing for extensive interactions across different blockchains, which piqued one of Coinbase’s many interests. Additionally, the exchange is intrigued by Across Protocol’s cutting-edge approach to managing transactions between various blockchains.
The trading platform is growing by adding new features and making more opportunities for users to invest in cutting-edge digital assets, although it’s unclear if these projects are as successful as Justin Sun suggests. However, the positive impact of such listings on the asset cannot be underestimated.
Read More
Sorry. No data so far.
2024-11-04 12:42