Despite the market slump, the price of Ethereum Classic (ETC) has surged by 25% over the past few hours after it was listed on cryptocurrency exchange Coinbase.
ETC up 25% after announcement
The cryptocurrency market is still in a bearish cycle following its recent slump on Sunday that saw the market dip by $42 billion and the price of Bitcoin dropping to the $6,700 region. Ethereum Classic, which is a hardfork of the Ethereum blockchain that was created in July 2016, was able to move past the market sentiment and record a 25% increase in price after the currency was listed on U.S. based cryptocurrency exchange, Coinbase.
The announcement was made by the exchange earlier this morning in a blog post with the exchange adding that the development team is now working on integrating the cryptocurrency into its platform.
In its blog post, Coinbase announced that a date for ETC to start launching on the platform will be announced to the public on September 5.
In their blog post, Coinbase commented;
As part of this process, customers can expect to see public-facing APIs and other signs that the asset (ETC) is being added. When we reach the final testing phase of the technical integration, which we expect to occur over the next few months, we will publicly announce a launch date for trading via our blog and Twitter.
In addition to all these, ETC will also be listed on CoinbasePro (GDAX) and Coinbase’s more traditional exchange service. The company is looking to add Ethereum Classic to some of the services it also provides. One of such services is custody service that was launched late last year.
The cryptocurrency will be enlisted on Coinbase Index Fund which is made up of all the digital currencies and assets that are listed on Coinbase. The Coinbase index fund, which was established earlier this year, was designed to lure institutional investors into the market. For accredited investors, the minimum to be a part of the Coinbase index fund is $250,000. The index fund makes it easy for the top investors to gain access to some of the leading cryptos.
In its blog post, Coinbase also assured its customers that it is currently working on releasing the Ethereum Classic that was obtained from Ethereum holders during the hardfork of the blockchain two years ago. This announcement has brought a sigh of relief to some users who will be able to access their lost ETC after waiting for two years.
The price of ETC shows that it has gone up by 25% after Coinbase tweeted its announcement, as it surged from $12.88 to as high as $16.15 within an hour of the announcement.
Coinbase finally adds a new asset
The decision by Coinbase took many by surprise as they had not expected the exchange to announce any listings at this time, probably the reason why ETC spiked so much in less than an hour.
The exchange, back in March, reiterated its stance that it hasn’t reached any decision about adding new assets to its platform after it made its position known back in January. Coinbase explained in March that;
The internal asset selection committee has been assessing assets using our Digital Asset Framework, but no assets have been recommended to the Coinbase executive team.
Why it decided to list Ethereum Classic now is something no one knows as the selection committee hasn’t provided any explanations regarding that. The selection process of Coinbase has been criticized by many in the cryptocurrency world, accusing the process of being dubious.
The criticism rose after Coinbase decided to list Bitcoin Cash just months after it was created from a Bitcoin hardfork. Back then, they had declined to list Ethereum Classic on their platform, which had been around a year before Bitcoin Cash came, with both of them, products of hardfork of major blockchains.
Just last month, Coinbase finally announced that it is working on supporting ERC-20 tokens on its platforms, even though they didn’t reveal the tokens they intend to list or when they will list them. Coinbase back then stated that its decision to list ERC-20 tokens paves the way for supporting ERC-20 assets across Coinbase products in the future.
Many in the cryptocurrency world have begun to speculate that the addition of ETC is a positive news for the cryptocurrency space and such news for needed for the market to recover from the loss of billions in past few days.