Coinbase’s New Coins

January 11, 2018
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If you’re a digital currency investor, I have a question for you. 

Do you use Coinbase? 

If you said yes, then you’re one of Coinbase’s 13 million users.

For those of you who said no, let me tell you a bit about Coinbase. Coinbase is the world’s leading software wallet. It allows users to both buy and store digital currency on its platform. 

Now, the reason I asked whether you use Coinbase is because it’s been a big year for the company. 

The exchange closed 2017 with more users than the stock brokerage Schwab. When Bitcoin broke the $19,000 mark in December, Coinbase was one of the top apps on the App Store. 

Beyond that success, there have been rumors of a Coinbase IPO, rumors that have whipped both market and digital currency investors into a frenzy. 

Yet, despite its evident popularity, Coinbase has one shortcoming…

Today the digital currency exchange only allows investors to buy four digital currencies: Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. 

Once you buy these coins on Coinbase, you can transfer them to other exchanges in order to purchase altcoins. For many investors, this is a frustrating step. It is also a nerve-wracking one. Coinbase has a pretty good record when it comes to security. Other exchanges have not been so lucky. 

That is why investors and crypto fanatics have been eagerly awaiting the addition of new coins and tokens onto Coinbase. 

And 2018 could finally bring those additions. 

The rumor mill is in full swing, as investors speculate over which digital currency will hit Coinbase next. If history repeats itself, this coin will skyrocket in value shortly after hitting Coinbase. 

So guessing correctly could be quite lucrative. Let’s take a look.

Coinbase’s Dramatic History

From 2012 to 2015, the only digital currency you could buy on Coinbase was Bitcoin.

In 2012, a bitcoin would have cost you around $13. Today that’s a steal. 

It wasn’t until 2016 that Coinbase introduced its second coin, Ethereum. Ethereum was introduced on July 21, 2016. 

The result was nothing short of dramatic. 

ethereum-july-20-24-2016

When Ethereum hit Coinbase, the price moved upward from $12 to nearly $15. That’s an increase of about 25%. 

These days, that may not seem very dramatic. In the digital currency world, it’s pennies. But to many people, that is a fast gain, and as the digital currency world grows, those percentage gains are getting bigger. 

If you need proof, you just need to look at the third digital currency introduced to Coinbase: Litecoin. 

Coinbase introduced Litecoin on May 3, 2017. After the introduction, Litecoin’s price moved up by over 100%. 

litecoin-may-2017

Litecoin flew upward from $15 to over $30 in just a handful of days. 

Litecoin’s price likely increased far more than Ethereum because of market exposure. By May 2017, the digital currency market was heating up, meaning Litecoin likely had a larger audience than Ethereum.  

And the Coinbase examples don’t end there. The most recent addition to Coinbase, Bitcoin Cash, also saw a dramatic spike in value leading up to and following its Coinbase release. 

When Bitcoin Cash hit Coinbase, the price spiked, surging upward by $2,000. 

That’s another price increase of 100%.

All that said, it’s pretty obvious why investors are so frantic to find the next Coinbase coin

And, lucky for you, Coinbase has left some hints as to what it may be.

How Coinbase Evaluates Potential Additions

The truth is that, despite rampant speculation, Coinbase does have firm guidelines that define what it’s looking for in a digital token.

These guidelines were established through Coinbase’s digital asset trading platform GDAX.

The first thing Coinbase takes into consideration is whether or not a token aligns with its values and mission. Coinbase is trying to add technologies that:

  1. Help solve problems and create new markets
  2. Allow individuals to participate in the economy and have better control over their personal finances
  3. Exist on a decentralized network
  4. Are easily accessed by everyone

In those technologies, Coinbase is also looking for specific things, including: 

  1. Open source code
  2. Good security
  3. A working prototype

All of the above are important factors that any investor should be thinking about, whether they are looking at an established digital currency or an initial coin offering. 

In fact, the way Coinbase evaluates potential tokens reminds me of the way a venture capitalist decides whether or not he or she wants to invest in a specific technology. 

Outside of the key factors outlined above, Coinbase also considers the team behind the token, the token’s scalability, and the company’s long-term business plan.  

Of course, all the traits above are hard to find in the vastly unregulated digital currency market. This explains why so few digital currencies have made it onto Coinbase thus far. 

But there are some with potential.

The Rumor Mill

In recent months, there have been multiple tokens tumbling through the Coinbase rumor mill. 

One of those is Ripple, which experienced a meteoric rise in the last couple weeks — a rise likely kicked off by the Coinbase rumor. 

On January 5th, Coinbase rejected the Ripple rumor. Ripple’s market cap dropped by $22 billion shortly after the announcement. That said, the frenzy around Ripple when the rumor was hot demonstrates that the next digital currency to hit Coinbase may get an even bigger reception than Litecoin and Bitcoin Cash. 

Outside of Ripple, there are a handful of digital currencies with unique technologies that make them good contenders for Coinbase. 

A few months ago, I isolated a digital token that I believe possesses one of the best technologies on the market. This token could completely reshape our internet and make you money in the process. 

Best yet, this token and its team are taking the critical steps necessary to make it Coinbase eligible. 

To learn more about that token before it takes off like the others, click here.

Fortune favors the bold,

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Alex Koyfman

follow basic@AlexKoyfman on Twitter

Coming to us from an already impressive career as an independent trader and private investor, Alex’s specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.

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