Newsflash: Stellar Price Spikes Just Prior to Coinbase App Listing
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.
Join CCN for $9.99 per month and get an ad-free version of CCN including discounts for future events and services. Support our journalists today. Click here to sign up.
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 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.