Just like in the stock market, the crypto space is rife with speculation, often causing the prices of coins to skyrocket or drop within seconds. The rumour surrounding Tron’s (TRX) potential listing on Coinbase is music to the ears of Tron HODLers and general crypto enthusiasts looking to win big by taking a gamble on an altcoin with a relatively low price.
Usually crypto rumours should be taken with a pinch of salt. Yet, it’s hard to deny that there are plenty of signs suggesting this one could be true. Let’s examine why Tron could be added to Coinbase in the near future.
1. Tron wants to increase trading pairs
During the Test Net launch live stream, Justin Sun mentioned how pairing with BTC has weighed down on the value of most altcoins in the market. And he might have a point. It seems that the prices of the entire market hinge on the prices of just a few coins. Pairing Tron with USD, for example, would allow investors to value the coin in terms of its project value, and not in relation to Bitcoin’s market issues. It would also open up the token to new investors who don’t have the patience to convert BTC or ETH on an exchange.
2. Coinbase needs to profit from exchanges
Unlike competing exchanges, Coinbase fees are expensive. As a result, most crypto traders will buy their Bitcoin or Ethereum on Coinbase, transfer them to an exchange like Binance, and trade them for altcoins. In other words, Coinbase loses out. Despite valuing itself at $8 billion, Coinbase will need to diversify its coin offering if it’s going to remain a profitable business.
#TRON is a top 5 by volume token soon to be a coin. Volume = profits for exchanges. Coinbase is an exchange for profit. Of course #TRX will be on coinbase. Its just a matter of how soon will it happen.
— TRON COP (@Dr_strange1) May 5, 2018
3. Coinbase is preparing for a huge increase in trading
It’s no surprise then that Coinbase has been quietly preparing for a monster increase in trading volume. It makes sense for a company that makes its money on trading fees: more trades means more profits. Could a planned increase in trading volume mean Coinbase is looking to add a cheaper altcoin with high volume like Tron to its platform?
4. Tron is opening an office in San Francisco
Why is this important? Well, it just so happens that Coinbase’s headquarters is also in the Golden Gate City. Being in close proximity will only strengthen the relationship between the two companies.
— Justin Sun (@justinsuntron) January 6, 2018
5. The Feng Li connection
If the rumour that early Coinbase investor Feng Li has a stake in Tron turns out to be true, it’s completely plausible that Li’s influence could help Tron secure a listing on Coinbase. So if Justin Sun’s team have really been pushing for a coveted place on Coinbase, Li might just be Tron’s golden ticket into the big leagues.
— Łitecoin Insider (@LiteInsider) May 5, 2018