If you are seeking to list on exchanges like Coinbase, it might also be good timing to understand that you might need some help from an experienced third party. A party, that partners with trading platforms can often guide you through an uneasy listing process. An entity, that can advise you where to list first and tailor a strategic listing plan for your token project.
Empirica offers token projects support in planning their listings. We will guide you step by step in launching your markets and making them liquid from day one.
Facts about the Coinbase exchange
Coinbase is one of the centralized crypto exchanges with the longest history as it was established more than 10 years ago, in 2012. The exchange is operated by Coinbase Global Inc, which is a publicly-traded company in the US. At the moment of writing (September 2022), Coinbase is the 4th largest cryptocurrency exchange based on trading volume. And according to Coingecko, it has received the highest trust score.
This crypto platform is available in more than 100 countries and its team comprises 4900 professionals from different regions.
Currently, traders who use this exchange have access to 226 coins and 542 trading pairs.
Listing on Coinbase
In 2021, Coinbase launched Asset Hub which is intended for facilitating and speeding up the listing process. Token projects are expected to submit their applications via this hub where all the provided data will be carefully verified by the company’s experts. Coinbase is open to welcoming new digital assets but to be listed tokens should meet the requirements introduced by the exchange. The exchange tries to make the listing process as transparent as possible. That’s why the team has shared a comprehensive listing guide on their official site.
According to the Coinbase blog, as of July 2022, the platform can list for trading 3 types of digital assets: ERC-20 tokens, SPL tokens, and assets on their own networks.
Coinbase’s score metrics
When choosing a venue for listing, it is important to check its reputation and general rank in comparison to other exchanges. A good choice is to check how CoinGecko, CoinMarketCap, and Nomics rate the exchange.
CoinGecko uses Trust Score, a rating algorithm evaluating the legitimacy of an exchange’s trading volume. Trust Score is calculated on a range of metrics such as liquidity, the scale of operations, cybersecurity score, and more. Coinbase’s Trust Score is 10. Only 10 out of more than 500 cryptocurrency platforms have a Trust Score of 10 points.
CoinMarketCap’s Exchange Score is based on the following factors:
- Web Traffic
- Average Liquidity & Volume
- the Confidence that the volume reported by an exchange is legitimate. Weights are assigned to the above-mentioned factors and a score from 0.0 to 10.0 is given to the Spot Exchange.
Coinbase’s Exchange Score is 8.1.
Nomics’ metric is called Impact Score – and represents an exchange’s influence on the price of cryptocurrencies it trades. The score is a combination of web traffic, volume, and other factors.
Coinbase’s Impact Score is 8.58.
The second Nomics metric, called Transparency Rating is A (full transparency). Nomics explains the purpose of these scores as rating cryptocurrency exchanges by their willingness to provide auditable history.
CryptoCompare has established the notion of Top-Tier volume whereby investors can segment the market into higher and lower-risk volumes (A is the best and E is the worst grade).
Here’s the current CyptoCompare’s classification of Coinbase in comparison with other exchanges:
Listing on Coinbase with our help
We can help you prepare for listing your token and managing liquidity on Coinbase and other exchanges. The usual process looks like this:
- We set up a call to understand the phase of your project. The following points will be discussed:
- Are you already listed on DEXes or CEXes?
- What is the tokenomy of your project?
- Do you have a listing strategy for your token?
- We discuss the best possible liquidity strategy for your project.
- If we agree to set up a partnership, we introduce you to verified managers of one or more exchanges (listing support).
- After your project gets listed on an exchange, we help you build your markets on platforms.
Why do I need a market maker?
Managing a token startup is a real challenge. As a cryptocurrency project, you must focus on building your products and services and leave liquidity to market makers.
A market maker will help you:
- deepen the liquidity on your token’s books and make them more stable – which helps mitigate the price fluctuations of your coin
- lower spreads between bids and asks so that the prices get fairer for investors; that reduces the cost of entering and exiting positions and encourages investors to trade your coin
In the 24/7 cryptocurrency markets, well-managed assets are supported by algorithmic market makers. They provide liquidity through market-making services, supported by fully automated software algorithms. Empirica’s liquidity products are reputable top-notch algorithmic market-making solutions.
SCHEDULE AN APPOINTMENT WITH US TO DISCUSS THE LISTINGS AND BUILDING THE LIQUIDITY OF YOUR MARKETS
WHERE IS COINBASE LOCATED?
Coinbase has its headquarters in San Francisco, the United States.
WHAT IS COINBASE’S DAILY TRADING VOLUME?
As of September 22, 2022, according to Coingecko, the 24h trading volume is close to $2.7 billion. The quarterly volume of the traded assets is around $217 billion.
IN WHAT COUNTRIES IS COINBASE AVAILABLE?
Coinbase is available to users from 14 countries in North and Central America, 10 countries in South America, 40 European countries, 17 Asian countries, and 24 countries in Africa and the Middle East.
WHAT IS A CENTRALIZED EXCHANGE (CEX)?
It is a digital asset marketplace using a similar business model to traditional asset platforms like stock exchanges.
Centralized crypto venues typically keep limit order books, which are lists of open buy and sell orders, consisting of volumes and prices. They match up buyers and sellers and announce current market prices based on the last price an asset sells for.
WHAT IS TOKEN LIQUIDITY?
This term refers to the ease with which tokens can be swapped for other cryptocurrencies (other crypto assets or government-issued fiat currencies).
WHO ARE MARKET MAKERS?
A market maker is a company or individual that regularly buys and sells financial assets at a publicly quoted price to provide liquidity to the financial or digital asset markets. Their role is to satisfy market demand. Market making is also used as a profit generation trading strategy by hedge funds.