Coinbase has released guidelines for listing new cryptos. This has got the crypto community excited because a listing on Coinbase has in the past led to huge pumps for the cryptos involved. Litecoin (LTC) pumped when it got listed, and a similar scenario played out when they announced the listing of Ethereum Classic (ETC). But even as investors get excited about the possibility of their favorite cryptos getting listed, it’s not all cryptos that actually qualify. One crypto that may not meet all of Coinbase’s requirements at this point is IOTA (MIOTA). That’s because there is one guideline by Coinbase that IOTA (MIOTA) does not meet, and that’s full decentralization.
According to the digital asset framework that Coinbase update on the 24th of September, the platform can only list a crypto if the network is public, decentralized and enables trustless consensus. IOTA does not meet this parameter because it has a central coordinator. The role of the central coordinator is to protect the network until it is big enough to operate securely without the need for a central coordinator. As long as the central coordinator is there, then IOTA (MIOTA) is not a fully decentralized and permission-less network. However, from the Coinbase checkboxes for listing, IOTA (MIOTA) meets all the other requirements. This means that in the future, IOTA stands a good chance of listing on this exchange.
But in the short-term, does a listing on Coinbase really matter for IOTA (MIOTA)? Well, broadly speaking, such a listing may not be that critical for IOTA (MIOTA), for a number of reasons. First, the central coordinator is there for a very good reason. The whole idea is to secure the network and allow it to grow to a point where it can stand on its own. That’s a bigger issue to the long-term prospects of this crypto, than any exchange listing in the short-term. It’s only through network security that the IOTA network will draw in more users and add to its long-term value.
Second, as more coins get listed on Coinbase, its effect on new coin listings will decline over time. This means that in the future, getting listed on Coinbase or any other exchange for that matter, will not lead to huge pumps. Cryptos are becoming more accessible through multiple platforms, and at some point, new listings will lose their impact.
What will matter are the core fundamentals of the project, and what it can do going into the long-run. On this front, IOTA is a pretty strong project. That’s because, it has an edge in a strong and fast growing upcoming market, and that’s the IoT market. Machine-to-machine communication is going big especially in the automobile industry. It is projected that this industry will be worth at least $10 trillion dollars. Since IOTA (MIOTA) is already getting adopted in this industry, its long-term prospects are great. Coinbase or no Coinbase, IOTA is headed to the moon. As more partnerships come up, the value of IOTA (MIOTA) could outpace its all-time highs.