The 'Coinbase Effect' on token listings is fading

In a move that took the cryptocurrency space by surprise, Coinbase announced Monday that it will be listing XRP, despite the uncertainty over whether the cryptocurrency might qualify as a security in the U.S. But to the surprise of many, the market didn't react as aggressively as when previous tokens were announced. Nearly 24 hours after the announcement, XRP's price is not even three percent higher than just prior to the announcement.

A listing on Coinbase historically came with the prestige and support of a well-regulated exchange. This was when Coinbase still seemed to follow their own Digital Asset Framework, which was created "to give quality projects access to quality customers." But as the bear market saw decreased demand in trading, Coinbase's revenues, which are driven almost exclusively by trading fees, suffered. In an effort to boost revenue and compete with the likes of Binance, Coinbase adjusted their strategy and cast a wider net.