Coinbase’s listing has caused controversy. A list of projects the platform might consider including was posted by Coinbase recently. according to pseudonym user PastryETH, makes some wonder if Coinbase is “willfully ignorant, or intentionally deceiving?”.
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Some of these projects were launched before 2020, and some have an ambiguous reputation. Pastry stated that Big Data Protocol (BDP) is one of these tokens. The project generated a lot hype and attracted more than $6 billion of total value (TVL).
This allowed BDP whales to “dump” their tokens on retail investors, as discovered by Igor Igamberdiev, The Block’s director of research. Pastry observed:
These addresses farmed massive amounts of $BDP and dumped it on LPs in BDP’s Pool2 which rewarded users with $bAlpha for providing liquidity to BDP/ETH. The whales could exit from it. BDP tokens feel between $13 and $3 while bAlpha is a dumping price of $25k to $5k.
BOTTO, which the pseudonym-user claimed has a market value of about $4 million is second. It could therefore see high volatility, an illiquid capital and a loss of potential traders. Pastry asked the following about Coinbase’s prospects:
Really, Coinbase? Are you not aware of the risks you expose thousands of traders to by listing a project that is so small and illiquid? Coinbase trades $327 billion in quarterly volume. Yet, they are willing to list a $4m market capital project. Irresponsible.
The same goes for $KROMATIK another of Coinbase’s potential crypto to add to its platform. It has an extremely small market, just $10 million. Pastry questioned the rise in its trading volume just days before Coinbase’s announcement.
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PMON and MONA were included in the list. Pastry said that PMON has a modest market cap, with an average daily volume of $10,000, which could cause harm to users.
On the other hand, PMON is a project dubbed “one of the largest marketing failures this bull-run, by Zachxbt a popular investigator. Pastry reports that this token was similar to BDP and used by the insiders of BDP to defraud retail investors.
There was also RAC, a token that has a trading volume of $0, and Student Coin, which had a similarly trading volume. According to the anonymous user, the list contains mostly unidentified crypto with high chances of harming users because of low trading volumes or inliquid markets.
Responding to the question of whether the exchange is listing out of “ignorance or malice”, Pastry said, he referred to evidence of a potential Coinbase insider purchasing large amounts of the tokens before the listing announcements. This presentation was made by Cobie, an influencer.
The Coinbase Asset Listing Post about the 24 hour before publication was made exclusively features an ETH account that purchased thousands of tokens worth hundreds of millions of dollars. pic.twitter.com/5QlVTjl0Jp
— Cobie (@cobie) April 12, 2022
Pastry ended:
Coinbase, I suggest that you immediately hire a new listing staff if you desire to preserve any relevance you may have (direct message are available, by the way). Listing utter garbage is a risky business model that exposes thousands to unneeded risks. Get better.
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ETH currently trades at $3,000 and has made a 1.4% profit over the past hour.
