MARKETBITCOIN

Coinbase News: Launches Custody Service for FTT, Lists OMG with a Surge of 176%

2020/5/22

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Despite being competitors, derivatives exchange FTX announced that it has selected Coinbase Custody International (CCI), a subsidiary of Coinbase, as the primary custodian for its platform token FTT.

Coinbase claims that FTX chose CCI after careful consideration as the storage solution for their platform token. FTX is their largest exchange client to date. Previously, institutions that have used Coinbase's custody services include Grayscale Investments, Polychain Capital, a16z, and others. The article states:

Coinbase Custody provides secure trading and storage solutions for our clients. In the next few days, there may be a significant amount of FTT token transfers on the blockchain. This is a controlled, closely monitored process of transferring to Coinbase Custody's offline storage platform.

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It was previously reported that FTX plans to enter the U.S. market by launching a spot trading platform, FTX.US, which will operate independently from FTX with a separate order book. FTX.US has notably higher fees compared to FTX, especially for retail investors, indicating a focus on the U.S. institutional market. However, this move seems to have little impact on the price of FTT.

Coinbase, established in 2012, is a well-established U.S. exchange. With the upcoming launch of FTX.US, its competitive relationship with FTX will become more apparent.

Cosmos and Algorand Token Staking Services

Coinbase Custody has launched token staking services for Cosmos (ATOM) and Algorand (ALGO) on the 21st of this month. Previously, Coinbase provided Tezos (XTZ) token staking services, despite the high fee of up to 25%, making it the largest institution for Tezos token staking.

Coinbase's "Listing Equals Surge" Pattern Returns?

Since Coinbase announced the listing of OmiseGO (OMG) on the 14th of this month, its token price has surged. However, in fact, OMG tokens have shown a gradual rise since March 13th, increasing from a low of 0.3 to nearly 1.98 USD before the deadline, representing an increase of over 600%.

Over the past few years, whenever Coinbase announces the upcoming listing of a token, it tends to bring significant upward momentum, but the "listing equals surge" pattern seems to have lost its effectiveness until the recent OMG token, which has surged by approximately 176.6% since its listing announcement, indicating a revival of this pattern. However, this argument is highly speculative, so investors should still proceed with caution and prioritize risk management in their investments.