Coinbase, one of the leading cryptocurrency exchanges, has recently made an exciting announcement regarding its asset roadmap. On July 29th, Coinbase revealed that it has added Bio Protocol (BIO) and Euler (EUL) to its list of potential assets for future listings on the platform.
Following this announcement, Bio Protocol experienced a significant surge in price, rallying nearly 17% before stabilizing. Euler also saw a positive response, with a 3.5% increase in its value. Both of these tokens are already listed on major cryptocurrency exchanges like Binance, OKX, and Kraken, which may mitigate the impact of a potential future listing on Coinbase.
Bio Protocol is the native token of a decentralized science ecosystem known as DeSci. It facilitates the creation of community-governed biotech research collectives called BioDAOs and supports the tokenization of scientific intellectual property. On the other hand, Euler is the governance token of Euler Finance, a decentralized finance lending protocol on Ethereum that allows users to lend and borrow a variety of crypto assets.
While Coinbase listings often result in short-term price rallies, commonly referred to as the “Coinbase effect,” the long-term impact can vary. The platform’s reputation and broad user base often lead to increased demand and upward price movement in the short term. However, factors such as market conditions, token supply dynamics, and investor sentiment can influence the sustainability of these price gains.
It is essential for investors to understand that inclusion in Coinbase’s asset roadmap does not guarantee a listing on the platform. Historical examples like the listing of Newton Protocol’s token, NEWT, which experienced a significant price drop shortly after listing, serve as a reminder of the volatility in the cryptocurrency market.
Similarly, Venice AI’s token, VVV, initially saw a price surge following its Coinbase listing but later crashed due to alleged token issuance and selling by the project team. Given that BIO and EUL are already listed on major exchanges, the impact of a potential Coinbase listing may not be as significant as it would be for newly launched tokens.
In conclusion, while the addition of Bio Protocol and Euler to Coinbase’s asset roadmap is undoubtedly a positive development for these tokens, investors should approach potential listings with caution and consider the broader market dynamics that could influence price movements. As always, it’s essential to conduct thorough research and due diligence before making any investment decisions in the volatile world of cryptocurrencies.