As the anticipation towards additional cryptocurrency integrations builds following the listing of Basic Attention Token (BAT) and 0x (ZRX), the prices of Cardano (ADA), Zcash (ZEC), and Stellar (XLM) have started to surge.
Since November 2, the day BAT was officially integrated into Coinbase Pro and Coinbase.com, XLM, the native cryptocurrency of the Stellar blockchain network, has increased from $0.22 to $0.28, by more than 27 percent.
Cardano and Zcash, two cryptocurrencies alongside Stellar, BAT, and 0x Coinbase expressed its interest in May, have also increased substantially in value.
Although the privacy-focused cryptocurrency Zcash experienced a 3 percent drop in price throughout the past 24 hour, since November 2, ZEC rose from $114 to $125, by around 9 percent. At its weekly peak, ZEC surpassed $140, demonstrating a staggering 21.7 increase in price in a two-week span.
Prior to the listing, subsequent to the official listing announcement of Coinbase, both BAT and 0x nearly doubled in value against both the US dollar and Bitcoin (BTC). However, after the official listing by Coinbase Pro and Coinbase.com, the price of BAT plunged from $0.37 to $0.25, by over 32 percent.
The price of BAT dropped to the point before the listing itself, demonstrating that the hype around the Coinbase listing, rather than the actual listing, led the price of BAT to surge. Hence, at this point, the significance of the Coinbase listing is in question, especially if tokens tend to fall by substantial margins following the integration.
The Coinbase listing is a confirmation that the token is not considered a security by the U.S. Securities and Exchange Commission (SEC), and it opens doors for other exchanges in the US and fiat-to-crypto exchanges across the world to accept and integrate it.
With the U.S. SEC increasing its efforts to crack down on tokens considered as securities and exchanges with tokens listed on them, a confirmation by the biggest fiat-to-crypto exchange in the global market is crucial, specifically because Coinbase is recognized as one of the most strictly compliant platforms in the US.
Upon the crackdown of EtherDelta, government enforcement defense and securities litigation attorney at Kobre & Kim, Jake Chervinsky, stated that it is likely the SEC has dozens of cases against tokens and exchanges pending.
“A few other key points for consideration. Most enforcement actions are kept confidential until they’re resolved to protect both the defendant (from bad press) & the government (from losses & inconsistencies). That’s why this case was settled before it was announced. On that point, remember all those subpoenas the SEC sent out earlier this year? Just because you haven’t heard about them recently doesn’t mean there aren’t dozens of investigations going on behind the scenes. Sooner or later, the floodgates will open,” he said.
Given that 0x and BAT, which have central development teams overseeing the development of the two digital assets were listed by Coinbase, the probability of the three digital assets being integrated into Coinbase is fairly high.
If so, with many positive developments including Stellar’s Blockchain wallet integration, growing adoption of ZK-SNARKs technology of Zcash, and rising adoption of Cardano’s smart contract protocol will positively affect the short-term price trend of the three assets.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: June 10, 2020 1:34 PM UTC