Stacks on Coinbase has finally arrived. If you’ve been reading this blog for awhile, you know how hard I ride for Stacks. I work 2 full time jobs from 8AM – 12 AM and I write when I can until 2:30. Most of what I write about is Stacks ecosystem related and I’m willing to give up sleep because I think this project and others in its gravitational pull are so important to document. So many in this community work harder that I do. And for everyone in the Stacks ecosystem online, today’s news is nothing short of colossal. January 19th at 9 AM, Stacks will be available to purchase on Coinbase allowing the masses to invest in the crypto that brings smart contract capabilities to Bitcoin.
Those of us in the Stacks Twitter community received notice pretty quickly this morning.
Stacks on Coinbase Rollout Means Exposure to Millions
Stacks is already available on a major exchange, OKCoin. However, this day is critical for the entire Stacks ecosystem as it can now be purchased easily by the more than 73 million registered users on Coinbase. OKCoin is my preferred crypto exchange, but Coinbase simply dwarfs it. The addition of Stacks will have an enormous impact on the visibility of the currency moving forward.
Stacks on Coinbase Means Goodbye to $2 Stacks?
Stacks is my largest holding and although I am still finding my way around, I am still impressed by the protocol and the people who are part of the STX community online. I still have so much to learn about its ecosystem, but I think there is so much promise in its NFT system and related projects, like, City Coins, Miami Coin, Arkadiko, and of course Theopetra. As these projects develop, the value of the ecosystem will skyrocket. Now that tens of millions more people will be able to acquire STX quickly and easily, the days of Stacks in the $2 range may be quickly drawing to a close.
So, How Should We Trade This?
Well, if you’re already holding a stack o’ Stacks, congratulations! What was trading in the $2 range this morning is now around $2.25 as I write this early Wednesday morning. While a 12% return in a few hours is solid, that’s not reason to get too excited. Don’t forget, STX was at $2.66 less than a month ago and we are still 30% short of its all-time high of $2.91. It remains to be seen if the next few days will get Stacks close to those numbers. (None of this is financial advice, please see our disclaimer at the bottom of this blog).
But what happens from here? Well, we can take a look at some recent examples of what happens when a currency hits Coinbase. This used to be referred to as “The Coinbase Effect,” currencies enjoying massive gains in the five days after listing on Coinbase. The examples in that link are all prior to September 2021. Let’s take a look at a few other coins that debuted since then and what happens to them in the days after listing and see if we can read anything from the patterns.
Jasmy Coin – Coinbase Listing on October 9th, 2021
On October 6, 2021, Jasmy Coin had a value of $.01746. This became $.05923 on October 8th after news of the imminent listing on Coinbase a +300% increase in two days. It stayed within this range for the next few days until hitting $.088 on the 12th and then falling back to $.06 a few days later. Jasmy had a 300% jump to $.06, stayed sideways there for a week and hasn’t looked back to that price range since three months ago.
Shiba Inu – Coinbase Listing on September 16th, 2021
Two days before listing on Coinbase, the price of Shiba was $.000006762. The day before, it shot up to $.000008587 and then dropped a bit on the 16th. It stayed that way until early October when it suddenly 3x’d. It would 3x *again* in early November. So, it you thought the sick pump would come from the Coinbase listing, you were left disappointed. You were left despondent if you sold your Shiba thinking that there was no pump coming, sold your stash and missed out on a near 10x in a few weeks time.
Voyager Token – Coinbase Listing on November 21, 2021
Price movement and volume increase suggest that the announcement for Voyager was made several days early. On November 16th, it was trading at $2.76. Two days later, still 4 days before the actual listing, it shot up to $4.34, a 57% jump. Listing day was no disappointment as the price increased from $3.78 to $5.15. The day after, VGX began a slow descent which it is still in two months later.
COTI – Coinbase Listing on August 25, 2021
On August 17th Coti was well off its all-time highs at $0.2217. A week later (still a day short of listing date) the crypto doubled in value to $0.48. On the 25th, Coti lost over 20% of its value, spent the next three weeks bouncing around the $0.30 – $0.39 range before doubling from $0.32 to $0.64 in less than a week. Anyone who held on to the currency after it dropped hard on listing day and continued to hold it for a month after was rewarded with a 3x.
Can We Compare Stacks to These Examples?
Well, let’s be clear, those currencies aren’t Stacks. While Coti has a bright future as fintech on Cardano, Shiba is a meme coin. Stacks has so much going for it with the ecosystem that I have mentioned before. The fact that it brings Ethereum-like capabilities to Bitcoin and that you can stack it and receive a Bitcoin reward is ridiculous. The masses need to know about it and be able to purchase it quickly and easily. That is possible now through Coinbase.
What Can We Learn From Those Examples?
Well, the “Bitcoin Effect” is pretty much out the window for the past several months. It used to mean consistent gains over a 5-day period. As those examples showed, it is possible to lose value on listing day. It is also instructive that Coti, Shiba and Jasmy all enjoyed huge pumps well some time after listing day. Which means that, although some of you would like to make a quick trade and scalp some cash, the best course of action may be to simply hold on to Stacks (like smart investors are doing anyway), since the real price jump and Stacks brightest days appear to be ahead of listing day.
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And what’s better than free money? Free Bitcoin!
-The Crypto Trend Analyst Team
Further Reading:
Cosmos (ATOM) Reaches Escape Velocity