{"id":215133,"date":"2022-01-30T21:00:27","date_gmt":"2022-01-30T15:30:27","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=215133"},"modified":"2022-01-31T19:37:17","modified_gmt":"2022-01-31T14:07:17","slug":"is-the-coinbase-effect-giving-the-exchange-an-unfair-advantage","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/is-the-coinbase-effect-giving-the-exchange-an-unfair-advantage\/","title":{"rendered":"Is the Coinbase effect giving the exchange an unfair advantage"},"content":{"rendered":"

We know that the “Coinbase Effect” has turned into an industry-wide phenomenon. This is because any token’s listing by the exchange is known to give a positive push to its value.\u00a0<\/span><\/p>\n

However, a recent report<\/a> by the Financial Times suggests that Coinbase is profiting from its listing. For instance, last month, crypto-startup Decentralized Social issued its token DESO which later got listed on Coinbase. Soon after, the token’s value skyrocketed by 100%, benefiting the venture.\u00a0<\/span><\/p>\n

FT reported that Coinbase’s venture arm was in fact a Venture capital (VC) firm backing Decentralized Social. While it raises questions about major conflicts of interest, DESO is only one of the at least 20 such listings by Coinbase as per the report.\u00a0<\/span><\/p>\n

Here, it is also worth noting that Jack Dorsey, former chief of Twitter, had dismissed Web3 as a VC playing field in the past.\u00a0<\/span><\/p>\n

\n

You don\u2019t own \u201cweb3.\u201d<\/p>\n

The VCs and their LPs do. It will never escape their incentives. It\u2019s ultimately a centralized entity with a different label. <\/p>\n

Know what you\u2019re getting into\u2026<\/p>\n

— jack (@jack) December 21, 2021<\/a><\/p><\/blockquote>\n