The “Coinbase Effect” seems to be back. The effect describes a phenomenon in the crypto space while Coinbase rally listed or supported coins. The idea here is that, since Coinbase is the world’s largest crypto startup, at least from a funding perspective, any coin it touches turns to gold.
As previously reported by CryptoSlate, Civic, a 2017 era altcoin, surged about 500 percent in the week after it was listed on Coinbase in November. This was despite mixed performance in the altcoin market at the time.
Another altcoin is benefiting from the Coinbase effect once again. But unlike last time, the rally was noticed by many.
NuCypher (NU) is surging 400% on Coinbase listing
According to CoinGecko, NuCypher’s token is up 400 percent in the past week alone, making it the best performing crypto asset in the top 100 by market capitalization.
The coin is up 60 percent against the US dollar in the last 24 hours, pushing to an all-time high at $ 0.35. The coin outperforms Bitcoin, which is up just one percent in the last 24 hours, and Ethereum, which has gained slightly more than BTC.
The coin now has a market capitalization in excess of $ 115 million.
This rally comes after it was announced that Coinbase would embrace NuCypher. The exchange first announced its support for the custody of the asset, along with a number of Ethereum-based coins.
Then, shortly thereafter, he revealed that the coin would be supported on Coinbase’s retail platforms:
“Starting today, Coinbase supports NuCypher (NU) in Coinbase.com and Coinbase Android and iOS apps. Coinbase customers can now buy, sell, convert, send, receive or store NU. NU is available in all regions supported by Coinbase. ”
Coinbase Custody now supports deposits and withdrawals for NuCypher ($ NU), Curve ($ CRV), REN ($ REN), wBTC ($ WBTC), tBTC ($ TBTC), and DFI Money ($ YFII ) https: // t .co / y4NV8jgtUP pic.twitter.com/ePxLaJARIJ
– Coinbase Custody (@CoinbaseCustody) December 3, 2020
NU is an Ethereum-based ticket and its main purpose is to be used as a stake to run a node on the NuCypher network. The network provides key data privacy and control for decentralized applications and protocols.
Privacy technology comes on fire
While NU may be rallying, crypto-related privacy technologies are under threat from regulatory agencies seeking to reduce crime enabled by this nascent technology.
The U.S. Internal Revenue Service (IRS) pays developers up to $ 625,000 for cracking private cryptocurrency transactions.
“IRS-CI is looking for a solution with one or more Contractors to provide innovative solutions for tracking and attributing privacy tiers and Tier 2 offline transactions, such as specialized tools, data, source code, algorithms and software development assist their Cybercrime agents in fulfilling their mission as it relates to cryptocurrency privacy technologies. ”
While the IRS has only named Bitcoin mixers, Monero, ZCash, and the Lightning Network, privacy crypto technology is on fire from regulators.
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