What Would Be The Fate Of Dogecoin After Coinbase Listing?

News / 16.05.2021

For Dogecoin (DOGE) holders, the times couldn’t be more exciting. Buoyed by endorsements from the likes of Elon Musk and Mark Cuban, the so-called joke coin has appreciated sharply in value.

And it seems that the interest it had generated isn’t waning anytime soon. Coinbase, U.S’s popular crypto exchange platform, has announced plans to list DOGE in the coming weeks.

Accelerating Asset On-Boarding

According to Coinbase’s CEO Brian Armstrong, the exchange is working to accelerate its assets onboarding process. Among the targeted assets is DOGE. 

While responding to a query from a crypto user, Mr. Armstrong disclosed that Coinbase hopes to list DOGE  in the next 6-8 weeks. The revelations emerged in a Reddit-style forum where the firm had engaged its shareholders. 

It waits to be seen how much of an impact the “Coinbase Effect” will have on DOGE in the long term. What is clear, though, is that it stands to benefit from the move.

Growth In Value

The Coinbase Effect theory proposes that specific promising digital tokens gain quickly at a price after their Coinbase debut. 

Research by crypto firm Messari indicates that assets gained by an average of 91% five days into their listing. Investors can therefore look forward to more significant growth of the coin.

Enhanced Credibility

Another possible scenario is that the listing will increase DOGE’s credibility. 

Coinbase is the market standard for crypto exchanges. In keeping with its gatekeeping functions, it undertakes a rigorous vetting of crypto assets before listing them.

Its limited asset offering publicizes the coins further and puts a seal of approval on the cryptos. Such digital assets increase investor confidence in them.

Mainstreaming DOGE

Additionally, we are looking at increased transactions in DOGE. Statistics show that Coinbase had 56 million users spread over 100 countries in Q1 2021. 

Dogecoin’s onboarding will expose it to millions the world over. This way, it will enhance the crypto’s mainstreaming.

A DOGE Payment System

The brainchild of software engineers Billy Markus and Jackson Palmer, Dogecoin was created as a joke payment system. It emerged as a parody of the wild speculative nature of crypto space. 

Over time, it has gained in popularity, helped by endorsements from influencing business people.

Tesla’s Elon Musk’s tweets regarding the coin have resulted in a gain of value. His recent tweet that he was engaging Doge Developers to boost the system’s transaction efficiency saw its price rally.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.