Coinbase Adds ETHFI and TAO Tokens to Its Listing Roadmap, Traders React

Coinbase, the largest US-based crypto exchange, indicated the addition of Ether.fi (ETHFI) and Bittensor (TAO) to its listing roadmap.

Coinbase, a major cryptocurrency exchange in the United States, has recently announced the addition of Ether.fi (ETHFI) and Bittensor (TAO) to its listing roadmap. This move has sparked a significant response from traders.

Coinbase maintains a limited selection of assets, including native assets on its network and tokens adhering to a supported token standard. Following this standard, Coinbase has added ETHFI and TAO to its listing roadmap.

An X (Twitter) post from the exchange suggests that ETHFI and TAO have met Coinbase's listing threshold. The U.S. exchange also listed the contract addresses for the two tokens, stating:

“Assets added to the roadmap today: Ether.fi (ETHFI), and Bittensor (TAO).”

Coinbase's decision to add ETHFI and TAO to its listing roadmap is reportedly made after the exchange conducts a "thorough processes and standards evaluation for legal, compliance and technical security." These criteria do not consider a project's market capitalization or popularity.

Following the Coinbase listing announcement, both the ETHFI and TAO tokens reacted with a surge of over 30% each before profit booking began.

This surge is not surprising, as tokens typically respond well to listing announcements on major cryptocurrency exchanges. For example, when Coinbase added the Base token (TOSHI) to its listing roadmap, the token price soared by 70%. Binance exchange's listing announcements also tend to generate a similar response.

These reactions can be attributed to the “buy-the-rumor, sell-the-event” scenario and the anticipation of increased liquidity. It's important to note that Binance is the largest crypto exchange in terms of trading volume, while Coinbase is the largest U.S.-based crypto exchange. With their high trading volumes and liquidity, traders can easily buy and sell tokens on these platforms.

Increased liquidity contributes to price appreciation, reducing price volatility and facilitating easier entry and exit for traders. Other influences include greater accessibility, rising demand, and enhanced credibility and trust.