Coinbase announces new listing considerations

The largest US exchange Coinbase has just released a list of new projects to be listed on its platform. In particular, this list has the presence of many quite new projects such as Nervos, Near, Orchid.

Since its inception, Coinbase has always positioned itself as a large and secure exchange, subject to all security and legal conditions. Therefore, being listed or considered to be listed on this trading platform is always a positive signal for many blockchain projects such as Nervos.

In order to be listed on Coinbase, projects must undergo a verification round to join the exchange’s Digital Asset Code. The set of standards will evaluate the project through criteria such as: Coinbase’s mission and value, technology, legal, liquidity, distribution, market demand, token economy, dynamic economic force, capital calling structure, …

During this phase, Coinbase is considering listing for 17 projects including:
Avalanche, Celo, Chia, Coda, Dfinity, Filecoin, Handshake, Kadena, Mobilecoin, NEAR, Nervos, Oasis, Orchid, Polkadot, Solana, Spacemesh, and Telegram.

The list of names both new and old, Filecoin is one of the origins of the ICO fundraising movement, while Nervos is a project that emerged later, not long ago but growing quickly.

In addition to fully complying with the standards set by Coinbase, these projects generally have a strong development team, backed by many large funds and exchanges. Near is a project directly funded by Coinbase Ventures, while Nervos is also a project backed by Huobi Capital, Polychain Capital. The Nervos team has also been the key personnel of many famous names such as Ethereum, Sparkpool and Imtoken.

Why are many MPs worried about Facebook’s cryptocurrency?

Lawmakers in many countries are concerned that Libra will affect their local currencies. Facebook plans to issue Libra cryptocurrency in 2020.

Lawmakers around the world put pressure on Libra, the cryptocurrency introduced by Facebook, on concern that the currency could disrupt the global financial system.

On September 17, the European Central Bank (ECB) executive board member Benoit Coeure warned that cryptocurrencies like Libra “could challenge the hegemony of the dollar.” This comment of Coeure also reflects the concern of President Donald Trump, once commented that Libra “has no influence and reliability” and “the true currency” in the US is the USD.

This seems to be a familiar topic for some regulators and legislators, who worry that Libra will compete with government currencies. The reason is that Facebook is so influential with more than 2.4 billion monthly active users, as of July. And companies in the Libra Association, a Swiss-based organization partnering with Facebook, include including big players like Uber, Visa, Vodafone.

Last week, finance ministers of France and Germany protested against Libra, saying the Facebook currency “failed” to address the risks surrounding financial security, investor protection and the law. anti money laundering. French Finance Minister Bruno Le Maire even said he “could not allow Libra’s development on European soil”.

The main concern for both countries is whether Facebook, a private company, can really compete with national currencies like EUR and USD. Experts say Facebook may also reduce the role of regulators.

Then last year’s Facebook scandal revolved around data privacy. Global privacy watchdogs from the UK, US and EU have expressed concern about Facebook’s too little mention of Libra users’ information security plans.

What does Facebook say?

Facebook’s argument is that they will not make a profit on the new cryptocurrency. Instead, Libra is tied to a currency basket like the USD to maintain a stable value. The main purpose of the new currency is to allow people to transfer money globally easily.

David Marcus, the chief executive of the project, said Libra “would not be a threat to the national currencies”.

In terms of privacy, Dante Disparte of the Libra Association said the organization is committed to protecting user data.

While Facebook is under pressure from lawmakers, Teunis Brosens of Dutch bank ING said the company was right to announce the Libra plan early. He said Facebook also opposes the views of people who “absoluteize” Bitcoin, relying on the world’s most famous cryptocurrency rather than traditional financial services.

Indeed, Facebook has been talking to global regulators in an effort to allay their fears about the Libra before its planned 2020 launch. On September 16, the company met with central bank officials in Basel, Switzerland. Earlier, Facebook’s Marcus appeared before Congress to answer questions from lawmakers about Libra.

According to industry experts, despite the backlash with Libra, this shows that regulatory agencies around the world are being forced to seriously consider the issue of cryptocurrencies – though some point out the differences. between Libra and cryptocurrencies like Bitcoin.

For example, the central bank’s idea of ​​cryptocurrencies seems to have been reconsidered by some institutions. This idea has been around for some time, and Sweden’s Riksbank is looking to test the development of the bank’s electronic version of the coin this year.

But more recently, Bank of England Governor Mark Carney proposed an electronic reserve currency, while ECB Coeure suggested that central banks should collaborate to research the supported cryptocurrency. by the government.

What is Libra?

First announced by Facebook in June, Libra is a cryptocurrency that is guaranteed to allow people to send money globally as easily as sending a photo or text.

Libra will be backed by a reserve currency basket. This is the difference between this currency and other cryptocurrencies like Bitcoin and Ether, which are known for their high price fluctuations.

Facebook has set up a new subsidiary called Calibra, which creates an e-wallet for users to store and exchange Libra coins, helping the company make a profit from virtual currencies. Marcus is the head of this unit.

And despite great pressure on the law, other countries may not be afraid of this project. ING’s Brosens said that central banks in emerging markets may be more open to a proposal like Libra, as their economy is heavily dependent on the US dollar.

“Their borrowing depends on the dollar. Monetary policy is also bound by the dollar and international capital flows ”.

The difference between Bitcoin halving and Litecoin halving

In addition to the current economic and trade instability, the halving event is expected by investors to bring great growth in the near future. However, to have an objective view of this expectation, let’s take a look at the statistics and research on Bitcoin Halving.

Halving is a term for cryptocurrencies that reduces the block reward of the network periodically. Typically, halving will exist in cryptocurrencies with a constant supply. This will help increase the scarcity of money over time.

In theory, if a commodity becomes more scarce over time, so does its value. So can this theory be applied to cryptocurrencies?

Halving of Litecoin

Over the past few months, Litecoin has received great attention from the community. A month ago, Litecoin halving reduced block rewards to half. In the time before halving, Litecoin’s profit margin completely defeated the overall market.

Investors expect after Litecoin’s halving event, prices will continue to grow. However, this prediction is completely opposite to reality. After halving, the price of Litecoin has quickly adjusted by more than 50% from the pre-halving peak.

So far, Litecoin has experienced 2 halving phases. And in both waves, Litecoin price volatility is similar. Increase sharply before halving and decrease sharply after halving. From this point on, the community began to question whether halving really values ​​the value of a currency. Or is it just an event to manipulate prices easier.

In May 2020, Bitcoin will perform its third halving. Looking at Litecoin, investors are starting to doubt Bitcoin’s halving. Will Bitcoin price be similar to Litecoin?

The difference between Litecoin and Bitcoin

Strix Leviathan, a researcher, has made some past statistics to compare Bitcoin and Litecoin. The statistical results show that, during the halving period, the price movements of Bitcoin and Litecoin were contradictory. As we have seen, Litecoin price increases before halving and declining after the event. In all halving times, Litecoin is like that.

Looking back at the price history of Bitcoin, during the last two halving sessions, the price of Bitcoin accumulated before halving and grew sharply after halving.

This means that the price volatility of existing cryptocurrencies does not come from its becoming more scarce. The author also thinks that the theory of supply and demand is not wrong. But the financial market contains many other theories. Besides, we must consider increasing the market manipulation situation at this time.

What should be expected of Bitcoin Halving?

One indicator commonly used by financial circles is Stock-to-flow. This index shows, the current ratio of supply to new supply created in a year of an asset. The Stock-to-flow Bitcoin Index will be equal to the current supply divided by the total number of Bitcoin mined in a year. Therefore, the halving event will affect Bitcoin’s stock-to-flow.

Historical data show that Bitcoin prices fluctuate quite closely compared to the Stock-to-flow index. Litecoin is not like that. Therefore, we have the air base to say that Bitcoin will not be the same as Litecoin in the time of halving and we can expect Bitcoin to grow after halving.

However, it is not objective to look at only one element. Because the market is a combination of countless thoughts and opinions, nothing is certain. Instead of keeping yourself in a position, let’s expand and absorb other perspectives to see a bigger picture and a more realistic picture.

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