Is Coinbase the reason behind price decline of Basic Attention Token(BAT)?

Most of the time when an announcement is made by a cryptocurrency exchange of a new cryptocurrency being reviewed or new listings to be added, there is a general feeling of anticipation, and the move is welcomed with much excitement. This is because the introduction of a new coin means, that the coin or token will be made available for trading and transacting to a much bigger audience, which in turn will impact the trading volume in the long run.

When analysts are asked about Coinbase and the ERC-20 token BAT, many of them are wary about whether the listing has limited the token’s adaptability instead of it being the other way around. Most traders are even confused about whether BAT’s listing on Coinbase has done any good to the token as the token has consistently been witnessing the downside, ever since its encounter with Coinbase.

Reportedly, BAT may have already lost its momentum, although it has been listed by the US-based exchange, Coinbase, on its Pro exchange platform.

BAT may have risen 20% after the announcement made by Coinbase. However, it was not many days later, when the coin dropped from its 29th position to the 30th spot. A report went on to show that the price of the token, which was previously trading at $0.31 had further dropped to $0.12

Analysts think that the Altcoin too has been trading in a similar fashion, of a short term rally followed by a long term price drop.

In October 2018 shortly after it got listed on Coinbase, ZRX 0x reportedly saw an upward trend in its price, and the token moved from $0.63 mark to the $1.01 mark.

At the moment, ZRX is trading at $0.29 which is nearly half of its initial price, before it got listed on Coinbase.

Looking at the consistent pattern in a price decline of various crypto tokens, many crypto traders and leaders have concluded that XRP is probably a much safe token and better off without getting listed on the US exchange platform. However, many experts in the crypto market believe that the conclusion of the traders is illogical and does not hold ground since market fluctuations are independent of the exchanges and the exchanges in no way influence market trends.

It can be clearly seen in the case of BAT, that prices of a token are solely dependent on trading interest. Because Coinbase is a globally recognized crypto exchange, traders expect that the prices of new tokens must reach sky high limits as soon as it is listed on Coinbase, which in a practical sense is impossible.

Many traders believe that although the BAT has experienced deflation in its price, it is managing to live up to trading expectations, and will grow eventually, but certainly not in this nascent stage.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

Related Articles

Back to top button