Basic Attention Token (BAT) Falls as Coinbase Rumour Buyers Sell the News
Following a month-long surge in which Basic Attention Token (BAT) shot to 144% gains on the back of Coinbase rumours, the BAT token price is now on the way back down after those rumours came to fruition.
In a classic example of ‘buy the rumour, sell the news’, BAT dropped 24% of its value just as the token completed its Coinbase saga and became available for full trading on the exchange.
BAT Lands on Coinbase
By Friday morning BAT had fallen 24% since the time of the Coinbase announcement, which appears to have been the clear catalyst for the drop. As stated in the official post by the exchange:
“Starting today, Coinbase supports the Basic Attention Token (BAT) at Coinbase.com and in the Coinbase Android and iOS apps. Coinbase customers can now buy, sell, send, receive, or store BAT, along with Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, ZRX and USDC.”
The rumours of a potential listing on Coinbase sparked a month-long growth spurt for BAT. First it racked up 42% gains shortly after the listing of Ox (ZRX), as the crypto community assumed another ERC-20 token would be next. Then it built on that growth, even amid an altcoin dip. Finally, by the start of November BAT had soared past quarterly highs, with another 25% boost just seven days ago at time of writing.
Sell the News
From the time of the Coinbase announcement on November 8th, to less than twenty-four hours later, Basic Attention Token plunged 24% as its token price fell from $0.381115 down to $0.289265.
A slight rebound occurred when the token fell to the $0.28 mark, and by time of of publication it had recovered to the $0.291 range. The drop was accompanied by a trade influx which more than trebled over the course of the day, rising from $27 million to $83 million.
It appears that sellers took this opportunity to buy back into BTC, as over 80% of trades came from the BAT/BTC pair on Friday morning. A sizeable 69% chunk of that action came from Binance alone.
BAT’s fall might come as a surprise to many, especially given the sudden flurry of media hype that the token experienced over the last few months. That was in no small part thanks to the rollout of the Brave Browser, which crossed ten million downloads several months ago.
Basic Attention Token’s fall, as sizeable as it is, isn’t a catastrophe. The altcoin has a strong fanbase, and over 70,000 holders according to etherscan. It just seems that at the moment, more people are interested in the Brave Browser than the token itself.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.