It’s being called the “Coinbase effect.”
- Oasis Network rose almost 17% in 24 hours on news of a Coinbase listing.
- Coinbase listings can have a big impact on crypto prices in the short term.
- Don’t assume a listing on Coinbase is an endorsement of the project.
Oasis Network (ROSE) was up almost 17% in 24 hours this morning, largely due to speculation ahead of its listing on Coinbase. Coinbase tweeted yesterday it would add support for Oasis, prompting the price to surge.
What is Oasis?
Oasis Network is one of the many programmable blockchains that have been touted as potential Ethereum (ETH) alternatives. What sets it apart from other smart contract cryptos is its focus on privacy. It wants to power an ecosystem of private, scalable decentralized finance (DeFi) applications. ROSE is the network’s native currency.
As the idea of Web 3 takes shape and gains traction, Oasis may be able to play a role here as well. Part of the idea of Web 3 is to give users rather than big corporations control of their data. The Oasis Network says its tokenized data could create the first ever responsible data economy. Tokenized data which is essentially a way for users to manage and even earn rewards on the data they create.
What this means for investors
If you’re a Coinbase investor, the big lesson to draw from the price action we’ve seen with Oasis and other new listings is that it’s better to wait a few days before you buy. Research shows that being listed on Coinbase can have a bigger impact on prices than a listing on other top crypto apps and exchanges.
Coinbase is making a concerted effort to bring investors a wider range of cryptos. It has over 50 assets under consideration for listing between April 1 and June 30 alone. This is good news for any American altcoin investors who are frustrated that many types of cryptocurrency are unavailable in the U.S. But just because a crypto is listed, doesn’t mean you need to rush to buy it.
The price spike is one reason it’s wise to wait for the initial excitement to pass. Another is that it takes time to research a new cryptocurrency. Don’t assume a listing in Coinbase is any kind of endorsement of the project. The popular crypto exchange made this clear last year, when Coinbase announced it planned to list as many cryptos as possible. CEO Brian Amstrong tweeted, “Outside of our listing standards (for safety/legality), we don’t offer an opinion on the value of each asset.”
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Do your own homework on crypto
Look at what problem the crypto tries to solve, how it compares with its competitors, what specific risks it faces, who is in charge, how active it is, and how the coins or tokens are distributed. Try to see beyond an initial short-term price action and think about how the cryptocurrency will perform in the coming five to 10 years.
Oasis, for example, has an experienced team and the issue of privacy is one that matters to a number of crypto investors. However, privacy-focused cryptos could be hard hit by increased crypto regulation or a backlash against bad actors in the crypto industry. It may have risen 17% in 24 hours, but where might it be in April, 2032?
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