Ethereum Classic Surges 19% to $14 Ahead of Coinbase Consumer Listing

Francisco Memoria
  • Ethereum Classic recently surged thanks to an announcement from Coinbase, revealing it'll be listed on Coinbase Consumer later today.
  • The cryptocurrency is now trading at little over $14, far from its $47 all-time high.

Ethereum Classic (ETC) has recently surged over 19%, shortly after the popular San Francisco-based cryptocurrency exchange Coinbase announced its adding it to Coinbase Consumer. Its users will be able to buy the cryptocurrency on its website and mobile app later today, August 16.

As CryptoGlobe covered, Coinbase announced it would add support for Ethereum Classic earlier this year, at about the same time leading exchange Binance added ETC trading pairs. The result was a 20% price surge.

Earlier this month Coinbase revealed it was in a final testing phase before adding support for the cryptocurrency, which helped its price surge to a three-month high of $21. The cryptocurrency’s all-time high, reached back in January of this year, came close to $47.

Shortly after Coinbase’s announcement, commission-free trading app Robinhood also revealed it was adding support for ETC, which further helped its price reach the $21 mark, before enduring a small correction and seeing today’s surge.

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Whenever a cryptocurrency is added to Coinbase, it’s price usually surges in what has become known as the “Coinbase effect” – currently affecting ETC. The effect is partly caused by the added liquidity the firm brings, provided by its over 13 million users. Recently, its CEO revealed it was adding 50,000 users a day last year. Notably last year, when the San Francisco-based exchange added Bitcoin Cash (BCH), the cryptocurrency’s price surged ahead of its official announcement.

At the time most believed someone leaked the information, meaning the price pump was a result of insider trading. Recently an internal investigation found there was no insider trading ahead of BCH’s listing.

While ETC is the latest cryptocurrency Coinbase is supporting, the exchange has revealed it’s considering various tokens. As covered, the company announced it’s looking into Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX).

In a subsequent blog post, Coinbase revealed its institutional custody service, Coinbase Custody, is exploring a range of new assets as well, including Ripple’s XRP, NEO, XMR, and EOS. The company recently made its Index Fund more attractive by halving its fee from 2% to 1%.

BBC: Facebook Planning to Launch ‘GlobalCoin’ in Q1 2020

Siamak Masnavi

Social networking giant Facebook is planning to launch its own cryptocurrency (internally dubbed "GlobalCoin") and crypto-powered global payments network (internally called "Project Libra") worldwide by Q1 2020, according to a report published earlier today by BBC News, the world's largest broadcast news organization.

Project Libra's Origin Story

  • 8 May 2018: In a post on Facebook, David Marcus, the former head of Messenger, who was at that time also a board member (since December 2017) of crypto exchange Coinbase, revealed that he was leaving that role to set up a new group focused on exploring applications of blockchain technology across the whole of Facebook.
  • 13 December 2018: Cheddar reported that Facebook’s blockchain group is planning to "potentially disrupt the entire payments industry":

"At a private dinner Facebook hosted during a recent crypto conference, one attendee told Cheddar that Facebook employees pitched the idea of creating a decentralized digital currency for the social network’s 2 billion users."

  • 21 December 2018: Bloomberg reported that Facebook was creating its own cryptocurrency (a stablecoin) for money transfers within its highly popular messaging app WhatsApp.
  • 28 February 2019: The New York Times confirmed Bloomberg's earlier story, and said that, according to its sources, this project was "far enough along that the social networking giant has held conversations with cryptocurrency exchanges about selling the Facebook coin to consumers."
  • 8 April 2019: Nathaniel Popper, one of the two journalists who wrote the report in the New York Times, provided this update (on Twitter) about Facebook's cryptocurrency project:
  • 2 May 2019: The Wall Street Journal reported that Facebook was "recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system," and that the core part of this initiative (code-named "Project Libra") is "a digital coin that its users could send to each other and use to make purchases both on Facebook and across the internet." Furthermore, this report said that, according to people familiar, Facebook was talking to "financial institutions including Visa Inc., Mastercard Inc. and payment processor First Data Corp." about investing in this project.
  • 17 May 2019: A report by Reuters said that FinTech company Libra Network was registered in the Republic and Canton of Geneva on May 2. Looking at the entry for Libra Networks, which was published on May 7 in the Swiss Official Gazettte of Commerce (SOGC), tells us:
    • Libra Networks LLC (registration number: CHE193533388) has its registered office in Geneva.
    • According to the English translation, the stated purpose of this company is "provision of services in the fields of finance and technology, as well as the development and production of related software and infrastructure, particularly in connection with investment activities, the payment operation, the financing, identity management, data analysis, big data, blockchain and other technologies."
    • The share capital is CHF 20,000 (100 shares, each with a nominal value of CHF 200); all of the shares are owned by Facebook Global Holdings II, LLC.

Facebook's Stablecoin: GlobalCoin

Here is what we have learnt from the BBC News report:

  • Facebook "is planning to set up a digital payments system in about a dozen countries by the first quarter of 2020."
  • The plan is to start testing the new cryptocurrency (some kind of stablecoin), GlobalCoin, by the end of 2019.
  • Facebook has been getting "advice on operational and regulatory issues" from the UK's central bank governor Mark Carney (whom Facebook founder and CEO Mark Zuckerberg reportedly met in April) and from U.S. Treasury officials.
  • Facebook is also in talks with global remittance firms such as Western Union "as it looks for cheaper and faster ways for people without a bank account to send and receive money."

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