In a surprise Tweet on June 11, 2018, Coinbase announced that Ethereum Classic, a fork of Ethereum (ETH), will be listed “in the coming months”.
Ethereum Classic Price Jump
Shortly after the announcement, the price of Ethereum Classic shot to the moon versus Bitcoin (ETC/BTC) as you can see in the graph below taken from Binance.
Coinbase Index Fund to Include Ethereum Classic (ETC)
The move coincides with the announcement that the Coinbase Index Fund is now open and will include Ethereum Classic (ETC).
This fund, which has a minimum investment of $250,000 USD, should bring in a lot of money to the assets currently listed – and soon to be listed – on Coinbase.
The Next Coins on Coinbase [June 2018 Update]
Coinbase CEO Brian Armstrong announced that Coinbase will be adding “many more” altcoins in 2018. In this article, our experts explain the 3 coins that are most likely to be listed on Coinbase in 2018.
The company recently announced that it will be rolling out ERC20 token support, another big hint at the coins likely to be listed.
Top 3 Coins Highly likely to be listed on Coinbase
Based on our analysis, our favorite picks come down to EOS, Stellar and Augur. These coins check off almost all of the most important factors Coinbase examines when deciding whether or not to list a new coin.
To buy and sell EOS, Stellar (XLM) and Augur (REP) we recommend Binance.
Analysis of the Next Coin(s) on Coinbase and GDAX
The Coinbase Effect
As one of the most popular places to buy and sell digital currency, it is likely that any newly coin listed on Coinbase will experience rapid price growth or as we like to call it the “Coinbase Effect”.
Since it’s been almost six months since Coinbase/GDAX added a new coin, we think one or more new listings are imminent. The price of Bitcoin Cash, the last coin to be listed on Coinbase, went up 10x during the 60 days leading to the announcement!
How Coinbase/GDAX Selects New Coins
Coinbase recently released its Digital Asset Framework. This framework describes the factors evaluated when adding new coins. Essentially, this resource gives you direct insight into how and why Coinbase adds new altcoins.
By understanding how Coinbase selects new altcoins, you can earn big returns by making some educated bets on coins that are highly likely to get listed.
Coinbase / GDAX’s Digital Asset Framework (Summary)
The framework is based on six pillars as follows:
1. Values: Does the new coin have the same goal of creating a better and open financial system?
2. Technology: Does the new coin have strong security, team, governance, and scalability?
3. Legal and compliance: can Coinbase legally list this coin?
4. Market Supply: Assessment of global market cap, circulation, # of exchanges, exchange volume distribution, geographic distribution, # of fiat pairs
5. Market Demand: Assessment of potential customer, developer community, big investors, growth of market capitalization, growth in nodes, fees, addresses, and transactions
6. Crypto Economics: Does the new coin/token have an ecosystem that makes sense? Was the coin/token distributed in a fair and equitable way (token sales)?
Now that we know what factors Coinbase considers when looking to add a new cryptocurrency or token, let’s take a look at the top 3 coins and tokens that are likely to get listed on Coinbase in 2018.
Eliminating the Obvious No’s
When analyzing which coins are likely to be listed on Coinbase and GDAX, a logical starting point would be to look at the top 10 or 20 non-listed coins by market capitalization.
Large market capitalization coins, by nature, check off many of the boxes described in the company’s coin selection protocol, whether directly or indirectly. Here is a snapshot of the top ten non-listed coins by market cap, with the exception of Bitcoin Cash and Litecoin, which are already listed. [updated 2018-05-31]
Ripple (XRP) – Denied
When looking at Ripple’s market cap, it seems like it’s an obvious winner but don’t be fooled. Not only has Coinbase crushed the recent rumors that XRP would be listed, Ripple is a centralized project, which violates the very first pillar of Coinbase’s protocol.
Nonetheless, the price of XRP skyrocketed just from the rumors as you can see from the chart below:
Dash (DASH) & Monero (XMR) – Most Unlikely
South Korea and Japan, two of the world’s most important cryptocurrency markets, have started banning exchanges from offering these anonymous cryptocurrencies.
This will likely follow in European and North American markets as well, therefore, we think these two are highly unlikely. Coinbase has a long history of taking its legal obligations seriously.
The next coin will already have fiat trading pairs
When looking at the Coinbase criteria for listing new coins, one of the most important criteria is Market Demand, which is further divided into two as shown below. This helps us quickly strike out a few more big names in the game.
This is especially helpful for helping us determine which coins to strike out next in order to arrive at our shortlist.
Interestingly, Cardano, Iota, and Tron do not trade on major fiat exchanges despite being listed on many crypto exchanges! This automatically disqualifies them from our consideration since this is such a crucial factor for liquidity.
Top 3 Coins to get Listed on Coinbase – Our Prediction
Based on our analysis so far, our favorite picks come down to EOS, Stellar and Augur.
|Traded on top 15 exchanges||Fiat pairs|
EOS and Stellar are well-established coins with strong teams, major exchange exposure, and market-wide recognition. Further, these guys both check off many of the boxes required to be listed on Coinbase.
Although we haven’t mentioned Augur yet in this piece, its numbers don’t lie. Augur is listed on 25 exchanges of which 6 are in the top 15 based on trading volume.
The reason Augur made it to our short list is because of its impressive 5 fiat trading pairs, respectable market cap, and trading volume. Augur can easily be the sleeper we’re all waiting to get listed and soar in price.
If you’re interested in trading EOS, Stellar (XLM) or Augur (REP), we recommend Binance. They have the most volumes and have virtually all of the interesting coins on the market. Further, they do a great job at vetting against fake and fraudulent coins and team.
Current coins trading on Coinbase
|Bitcoin Cash (BCH)||✔||✔|
Get $10 of free Bitcoin when you register to Coinbase through XBT.net!