Tezos, the nineteenth largest cryptocurrency by market cap, pumped by approximately 22% after Coinbase’s arm, Coinbase Custody, announced the option to stake for its institutional clients.
The price of Tezos was $0.780, before the price pumped by a massive 21.79% following the announcement. The price of Tezos was $0.862 and the market cap was $6.6 billion, at press time.
Further, there had been reports last month about Coinbase hiring Luke Youngblood to help launch the Tezos network by creating the staking infrastructure for the Tezos Foundation.
Coinbase Custody’s website had shared a screenshot of the staking service, before the announcement was made.
According to the 7-day chart for Tezos, the price was moving more or less in a sideways fashion. After the announcement by Coinbase, the price surged. This phenomenon of price surges after Coinbase announcements is not uncommon, and has been termed as “the Coinbase effect.”
The price has pumped by approximately 156% since 8 March 2019. Tezos’ on-chain governance is supposed to go live in a couple of weeks, which will be a new milestone for the Tezos community. Blocktown Capital tweeted the timeline for the same,
“For anyone watching Tezos’ first demonstration of on-chain governance in action, here is a timeline we made of important milestones over the next several weeks. April 13 (estimated) concluding the Exploration Vote Period is the next milestone! $XTZ @tezos”
Coinbase is offering its clients the opportunity to make a return on their XTZ, the company announced on Friday. After deducting Coinbase’s fee, investors can expect an annual return of around 6.6 percent, the firm estimated.
@oneBuckSwope, a Twitter user, commented,
“Just like when xrp went up over rumors of coinbase listing it in 2018. The market is dumb.”
Another Twitter user @coolhandcanuck, commented,
“Coinbase custody clients can now hold pow coins rewarding miners or pos coins and reward themselves.”
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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.