Is it worth listing on Coinbase from the project’s point of view?
It’s a popular exchange. There are a lot of retail investors and a lot of volumes. Listing there is also a good marketing signal because this exchange is transparent, stable, and has an excellent reputation. In our opinion, listing there should be the goal of every project. However, it is not always a straightforward process.
Who is the market maker on Coinbase?
Market makers on Coinbase are independent companies, like ours, that provide liquidity for projects on their own accounts. We help projects build healthy organic liquidity. In such a market as Coinbase, it is worth providing investors with sufficient liquidity to take advantage of the fact that many retail and institutional investors are there. A healthy order book builds investor confidence.
Take a look at how our crypto market makers help projects grow on crypto exchanges like Coinbase.
Is Coinbase a maker market?
No Coinbase is not engaged directly in market making activities and we are not aware of any market makers associated with this exchange. On the occasion of the publication in the Wall Street Journal, the company denies that I engage in trading on their own accounts and market making.
“Unlike many of our competitors, Coinbase does not operate a proprietary trading business or act as a market maker. One of the competitive strengths of our Institutional Prime platform is our agency-only trading model, where we act only on behalf of our clients. As a result, our incentives and our clients’ incentives are aligned by design.”
The company response can be found here.
We support this level of transparency. Exchanges entering prop trading or market making enter a very ambiguous field that destroys the trust of their clients. And many do. We need in crypto as much transparency and clearly drawn lines as possible.
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
Learn more about listing your project on different exchanges
In 2021, Coinbase launched Asset Hub, intended to facilitate and speed up the listing process for early-stage projects. Projects submit applications via this hub, where the company will verify the provided data. To be listed, tokens should meet the exchange’s requirements, described in this listing guide.
The platform lists ERC-20 tokens and SPL tokens.
Is Coinbase safe?
Coinbase’s score metrics
When choosing a venue for listing, it is essential first to check how the company deals with its reserves. And secondly, its reputation and general rank compared 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.
Coinbase is one of the centralized crypto exchanges with the longest history, as it was established more than ten years ago, in 2012. The exchange is operated by Coinbase Global Inc, 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. It received the highest trust score on Coingecko.
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.
More on listing on Coinbase.
Let’s discuss the listings and the liquidity of your project.