Zcash Price Jumps on Unexpected Coinbase Listing; ZEC/USDC Pair Goes Live
After weeks of anticipation regarding which of the Stellar (XLM), Cardano (ADA) and Zcash (ZEC) trifecta would be next listed on Coinbase Pro, the exchange announced today that ZEC has won through.
Unlike with the listings of Basic Attention Token (BAT) and Ox (ZRX) earlier in the year, the announcement was sudden and unexpected, effectively undercutting the usual month-long pre-listing pump that we’ve become accustomed to.
The listing was enough to trigger a 21% growth spurt for Zcash amid a day when the broader market was in general decline.
Zcash Hits Coinbase Pro
As per the Coinbase announcement on Thursday:
“At 10am PT on Thursday, November 29, we will begin accepting inbound transfers of Zcash (ZEC) on Coinbase Pro. We will accept deposits for at least 12 hours prior to enabling trading. Once sufficient liquidity is established, trading on the ZEC/USDC order book will start.”
Zcash is an anonymity focused coin which shields transactions and addresses, thus presenting a possible issue for a public currency exchange. According to Coinbase, deposits can be made from anonymous addresses, although withdrawals will have to be transparent for now:
“Initially, we will support deposits from both transparent and shielded addresses, but only support withdrawals to transparent addresses. In the future, we’ll explore support for withdrawals to shielded addresses in locations where it complies with local laws.”
The popular opinion was that Stellar (XLM) would be next to be added to Coinbase, although that now seems to have been false speculation – speculation which the XLM may have paid for in the last few weeks.
Zcash was expected to pose technical issues for the Coinbase team, however, a quick survey of the coin’s past reveals something more suited to the exchange than many would expect.
Zcash launched without ICO, thus sidestepping any regulatory mess which token issuances may throw up. The coin has long been linked with JP Morgan Chase, with whom it has formed a tech partnership.
ZEC has its own investment trust, courtesy of Grayscale Investment LLC, who also produced this investment thesis for prospective ZEC investors. ZEC also has a history with crypto finance firm, Circle, which recently had its own USDC stablecoin added to Coinbase Pro – the one which ZEC will be traded against initially.
ZEC Price Jumps On News
It seems there wasn’t much time to buy the rumour this time, as the price of ZEC suddenly pumped and then dumped again as soon as the Coinbase announcement went out.
From the daily low of $77.18, ZEC climbed 21% up to $93.50 at the peak of the spike. However, the peak was short lived, and the coin price eventually reverted to the $89-90 range. The coin price continues to rise at time of writing, as the broader market attempts another upturn.
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.
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