Newsflash: Stellar Price Spikes Just Prior to Coinbase App Listing

Journalist:
March 18, 2019

The stellar cryptocurrency has completed its Coinbase rollout following its listing on the retail-facing brokerage platform Coinbase.com.

Stellar Goes Live on Coinbase.com & Mobile Apps

The US-based crypto exchange announced just minutes ago that stellar was now available on the Coinbase website and mobile apps, approximately five days after the cryptocurrency launched on order-book exchange Coinbase Pro.

The stellar cryptocurrency is now available on Coinbase.com and the firm’s mobile apps. | Source: Coinbase/Twitter

Stellar Price Makes Notable Jump Just Before Announcement

The stellar price made a small, but noticeable, jump in the hours before Coinbase made the announcement. Shortly after 11:30 UTC, XLM was trading at a global average of $0.109, according to CoinMarketCap. By 13:00, XLM had reached $0.113 where it continued to trade at the time of writing.

The stellar price made a small but notable jump in the hours leading up to the Coinbase announcement. | Source: CoinMarketCap

The 3.7 percent jump would ordinarily attract little attention, but it’s notable given that Coinbase has faced accusations of insider trading related to its crypto token launches, particularly the bitcoin cash listing which occurred at the height of the crypto boom in 2017. The company claimed to have found no evidence that its employees had violated company policy by trading on the announcement ahead of time.

Nevertheless, Coinbase altered its listing process in the wake of that scandal in a bid to be more transparent. Among other things, the company published an article in December 2018 informing users that it was “exploring” support for stellar and more than two dozen other cryptocurrencies.

Those moves, along with the increasing number of cryptocurrencies now available through the company, appear to have helped dampen the so-called “Coinbase Effect” that caused asset prices to spike on news – or even rumors – of their listing on the crypto exchange.

There is no evidence that the timing of today’s XLM bounce was anything more than a coincidence. Still, minor though it may have been, the stellar price’s pre-listing jump is hard to ignore, particularly when compared to the flat prices throughout the wider large-cap cryptocurrency index.

Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.