Immediately after entering Ethereum Classic (ETC) in August, Coinbase set its sights on the five digital assets of Ox (ZRX), Basic Attention Token (BAT), ZCash (ZEC), Stellar (XLM) and Cardano (ADA). The exchange went on to list the first two digital resources in mid-October and at the beginning of November, respectively. The theory says that the exchange is more inclined to list the ERC20 tokens as ZRX and BAT because of the ease of integration with the platform that already supports Ethereum. This can explain why the exchange first chose the two digital resources.
Why ZCash was listed before Stellar (XLM)
Just yesterday, Coinbase Pro announced that it was listing ZEC. This was a surprise for many crypto investors and traders who thought that Stellar (XLM) was next in line after BAT and ZRX.
The exchange usually does not explain why it chooses to list one digital asset over another, so we will try to explain why ZEC was listed before XLM. We'll talk about it two speculative reasons about why it was so. Therefore, let's kick start with the first reason why the exchange probably listed ZCash (ZEC) before Stellar (XLM).
Compete with the twins exchange By the Winklevoss
Firstly, ZEC was listed before XLM came back in time when Winklevoss did something extraordinary by ordering ZCash (ZEC) on the Gemini Exchange in mid-May. The exchange also placed ZEC among its major digital assets as it was paired with Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
One month later, in mid-June, Coinbase announced that it was interested in listing the 5 digital resources mentioned above. It is therefore not surprising to find out that ZEC was on the list given the announcement of Gemini only a month before. Coinbase was simply increasing his game to compete with Gemini.
Demand from institutional clients
Given that the Gemini exchange has already had an advantage over Coinbase by offering ZEC to institutional clients, it is fair that Coinbase will probably want to list the digital asset because of the demand. If Gemini had been offering ZEC since May 2018, some institutional clients who wanted to do business with Coinbase probably asked for information on ZEC and this last exchange had to be respected 6 months later.
Coinbase opens an OTC bank because of requests from institutional clients
An example of Coinbase meeting investors' requirements can be seen when he announced earlier this week that he was planning to launch an OTC (Over The Counter) trading desk due to demand from institutional clients.
ZEC was listed on Coinbase Pro in front of Stellar (XLM) and Cardano (ADA). The reasons for doing so remain a secret kept in the exchange but we have explored two speculative reasons as to why this was so. The first is that Coinbase wants to complete with the Gemini Exchange that was offering ZEC to institutional clients since May. The second reason is the request from institutional investors as a result of the fact that Gemini already offers ZEC for almost 6 months. Coinbase was sure to receive support requests from ZEC and the central team responded to these requests.
What are your views on Coinbase that lists ZEC before XLM and ADA? Let us know in the comments section below.
[Image courtesy of Coinbase]
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