Primarily, it takes forever for any crypto project to get listed on American crypto exchange platform, Coinbase. Uniswap’s UNI token listing on the platform came on a platter of gold hitting Coinbase hours after its launch.
Largely, it is because Coinbase is an investor in Universal Navigation Inc, the parent company and developer of Uniswap. Coinbase wants to hold unto its investment in UNI and maintains internal policies that address the timing of permissible disposition of its digital assets, including UNI tokens.
The American exchange firm announced UNI token listing on its platform in a blog post. However, Coinbase Pro is the only platform UNI token is listed. The exchange did not mention if the digital asset would on its retail-orientated platform.
UNI token developed by Uniswap launched in 2018. Uniswap is among the front liners of a new trading platform. These platforms use smart contract-based liquidity pools to spot prices and facilitate trades, also known as “swaps.”
After UNI Coinbase debut, what happened?
UNI’s debut in the Coinbase Pro platform was followed by the regular “Coinbase pump.” UNI price surged by 22 percent after it was put up on Coinbase Pro.
Uniswap also airdropped its token to everyone who used its platform before September 1. Liquidity providers, casual traders, and users who tried transacting in the network but got rewarded. They all got at least 400 UNI.
Coinbase pump remains a trend when new tokens are listed on the platform. ALGO (Algorand) surged 30 percent after Coinbase announced it was going to list the digital asset. OmiseGo also experienced a similar occurrence surging 200 percent after Coinbase listed it.
However, with UNI’s listing, trading of the crypto would begin later in the day after sufficient “liquidity conditions” are met. This is to prevent a one-sided market or large UNI holders from manipulating the market, Coinbase announced.
Uniswap’s Automated Market Maker (AMM)
Uniswap makes use of an automated market maker protocol to spot prices and facilitate trades. With this, users become liquidity providers when they deposit digital assets into the pools. They also receive interest and a cut of transaction fees in return.
Coinbase on the other hand makes use of the more traditional method. Here, the user’s trade are matched against a list, or book, of buys and sells, and executed at the best available price.
The American exchange firm has also listed several DeFi recently like yearn.finance, Loopring, and others to provide users with a wider range of cryptocurrencies.
Coinbase said listing more cryptocurrencies are part of the requests they get the most to enable their users to trade more assets on their platform.
The post Coinbase Pro lists Uniswap’s token ‘UNI’ hours after launch appeared first on BlocDesk.
Source: Coinbase Pro lists Uniswap’s token ‘UNI’ hours after launch