Shiba Inu Coin Declines Sharply After Coinbase Listing Delay
Many crypto enthusiasts were shocked when Coinbase Pro disclosed that Shiba Inu (SHIB) would be listed on the exchange. Mainly because SHIB is widely considered a meme currency with no unique feature, Coinbase is arguably the most regulated, compliant exchange globally.
However, the exchange revealed earlier in the week that it would soon list Shiba Inu (SHIB), Keep Network (KEEP), and Chiliz (CHZ). Most crypto enthusiasts suggested that Coinbase was only trying to compete on revenue, having seen earned by their competition who list such coins.
Nevertheless, the Shiba Inu ecosystem was very excited. However, their happiness quickly disappeared when Coinbase Pro announced on Wednesday that there would be a delay to the planned listing.
The exchange via a tweet and blog post revealed that “as a result of some slight technical issues, the listing of SHIB on our exchange will be delayed temporarily.”
It further said, “SHIB deposits will also be disabled, but withdrawals are still possible.”
Coinbase Pro Tweet. Source: Twitter
SHIB Spirals Down
Few hours after the exchange’s announcement, SHIB price declined almost 11%, even wiping out the gains it accumulated when the listing announcement was made earlier in the week.
As of this writing, the Shiba Inu coin has now dropped by an astonishing 80% since May 10, when it attained peak price. However, those who invested in it in November last year would have earned about 14,000,000% returns on their investment.
Based on current price charts, SHIB rests on a local support level. The $0.00000077 is a clear demand level that buyers can use to increase their stakes, but the $0.0000099 level is a clear supply level for sellers to make some gains.
SHIB/USD chart. Source: TradingView
While some SHIB community members are disappointed right now, they can still be hopeful. Coinbase Pro announced that it would soon allow SHIB deposits. The exchange said, “we will soon release a timeline of when deposits and trading on SHIB will be restored.”
A Coinbase Delay Isn’t New
This isn’t the first time Coinbase Pro will be delaying a listing. Recently, the exchange delayed the listing of Solana. SOL was scheduled to be listed on May 24 but was listed this week. Thus, it is likely that the SHIB listing might not happen anytime soon.
Recent research by crypto analytics firm, Messari revealed that there is always a “Coinbase boost” for any cryptocurrency listed on the exchange. The price of any newly listed cryptocurrency on Coinbase usually rises by about 30%.
One hypothesis for this sharp rise is that the exchange makes it easy for any of its users, regardless of their financial expertise, to “buy” so long they’ve linked their debit card to their Coinbase accounts. Even a listing of any digital currency on Coinbase’s trading app boosts such coin’s price before the website listing.
It is no wonder why SHIB price rose by almost 27% within three hours immediately after the exchange announced its listing on June 15, 2021, rising from about $0.00000724 to about $0.00000913 in that period. But it now currently trades at about $0.0000077.
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