Fetch.ai Token Whiplashes on Coinbase; Listing Still ‘Groundbreaking,’ Says CEO
The price of Fetch.ai’s native token (FET) has endured a roller-coaster run over the last 24-hours following a listing on the U.S. cryptocurrency exchange Coinbase on Wednesday.
More important than price, however, the listing itself is a “groundbreaking moment” for the blockchain machine-learning platform, Fetch CEO Humayun Sheikh told Fintech Zoom via a spokesperson on Wednesday.
FET is an Ethereum-based token powering applications on Fetch’s platform, which provides users access to artificial intelligence and autonomous agents in manufacturing and supply chains, among others.
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Prior to the listing, most of Fetch’s retail investors came from the EU market.
The listing “has a very powerful branding effect on the project,” said Sheikh. “With millions of retail investors based in the U.S. looking to invest in cryptos beyond bitcoin and ether, the FET token will gain additional awareness and trading volume due to the listing.”
Indeed, prices for FET shot up in days prior to the announcement, rising 75% from July 17 lows of around $0.19 to a top of $0.42 on July 26, two days prior to Fetch’s big moment, Binance data show.
That is not unusual for a coin being listed on one of the world’s best-known exchanges. Often dubbed the “Coinbase Effect” where a given crypto usually experiences a sharp uptick in price preceding and following its listing.
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After the listing though, a crypto’s price tends to cool as speculative traders look to cash in on the hype surrounding its new home. On Coinbase, prices for FET are down considerably from a local high of $0.65, witnessed July 27. That’s $0.23 more than Binance’s local top.
Asked if the project would liquidate some of the value of its tokens to funnel into further development for the platform, the CEO said Fetch “keeps all options open” but generally focuses on investors and partnerships.
Sheikh also said that while he was not at liberty to discuss the process for a Coinbase listing, it did involve a “lot of due diligence” on matters relating to security, legal, technical and compliance.
The “process can take months and years as they review every aspect of the project before they decide to go ahead,” Sheikh said.
FET was last seen changing hands for around $0.34 on Coinbase with lower than average hourly trading volume following price action having cooled by Wednesday evening.
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