The price of UMA, a financial contract platform token has dropped by about 28.43% in less than 24 hours after announcment that it will be listed on Coinbase Pro. By the press time the asset was trading at $12.71.
The drop comes after the asset hit its all-time high price of $27.29 on September 1st, a growth of 518.821% from August 1st. The drop in price correlates with the plunge in value by other digital assets led by Bitcoin.
A statement from Coinbase indicates that accepting inbound transfers of UMA to Coinbase Pro began on September 4th. Trading is set for September 8 upon fulfilling liquidity conditions. Trading for UMA will be in BTC, USD, EUR, and GBP pairs.
UMA is an Ethereum backed synthetics derivatives asset that builds open-source infrastructure for ‘priceless’ financial contracts on Ethereum.
Coinbase’s new focus on small projects
In June, Coinbase announced its plan to prioritize support for tokens for little known projects, a move that has baffled many crypto enthusiasts. For example, the exchange announced the listing of another little known Celo utility tokens. Notably, Coinbase currently holds both Celo utility tokens and UMA tokens from its 2018 investments.
Tim Copeland, UK news editor at popular crypto website Decrypt.co, is among individuals to express concerns over Coinbase’s apparent change in new project listing guidelines.
Uplon listing on Coinbase, digital assets usually witness a spike in their prices in what has become to be known as the “Coinbase Effect”.
Coinbase has strict procedures and guidelines before considering the listing of new assets. However, the exchange is taking the same path as Binance and OKEx in adding new cryptocurrencies with potential.
Recently, OKEx also listed UMA which will be trading against USDT and ETH on the platform. Recently, OKEx created a record of sorts by listing 8 DeFi projects in a single day.