Coinbase adds BIO and EUL to its asset roadmap, how are these tokens performing?

Coinbase has included Bio Protocol and Euler in its asset roadmap, indicating they could be listed on the exchange down the line.

In a July 29 X post, crypto exchange Coinbase announced that it has added Bio Protocol (BIO) and Euler (EUL) to its asset roadmap.

Following the announcement, BIO rallied nearly 17% before giving up some of its gains and trading slightly lower at the time of writing.

For the uninitiated, Bio Protocol is the native token powering a decentralized science (DeSci) ecosystem. It enables the creation of community-governed biotech research collectives, known as BioDAOs, and supports the tokenization of scientific intellectual property.

Euler, on the other hand, is the governance token for Euler Finance, a permissionless DeFi lending protocol built on Ethereum. It allows users to lend and borrow a wide range of crypto assets, including long-tailed tokens not typically supported by other platforms. EUL has reacted more modestly, going up just 3.5% after the announcement.

Both tokens have already secured listings on several popular cryptocurrency exchanges, such as Binance, OKX, Kraken, Gate.io, MEXC, KuCoin for Bio Protocol, and Kraken, KuCoin, HTX, Gate.io for Euler.

However, investors should note that Coinbase’s asset roadmap only indicates the cryptocurrencies currently under consideration for potential listing and does not guarantee that they will ultimately be added to the platform.

The Coinbase effect

As a Tier-1 exchange, Coinbase listings often result in short-term rallies. Crypto traders refer to it as the “Coinbase effect.” The momentum stems from the platform’s reputation, broad user base, and appeal among institutional investors.

Market participants tend to interpret listings as a signal of legitimacy, which frequently leads to increased demand and upward price pressure in the short term.

Historically, several tokens have recorded double-digit intraday gains following a Coinbase announcement or listing. 

However, while initial rallies are common, they are not guaranteed, nor do they always sustain over the long term. Market conditions, token supply dynamics, and broader investor sentiment all play a role in determining whether the listing leads to lasting appreciation.

For instance, NEWT, the native token of Newton Protocol, crashed 44% shortly after its listing on Coinbase. According to a report by crypto.news, the sharp drop was driven by investors selling off their airdropped tokens to secure profits, leading to heightened selling pressure immediately following the listing.

Another example that underscores this volatility is the case of Venice AI’s token, VVV. Shortly after being listed on Coinbase, the token saw a sharp initial pump. However, the rally was short-lived, and the price crashed after reports emerged that the project team allegedly issued and sold approximately $5.7 million worth of VVV tokens around the time of the listing.

Since both BIO and EUL are already listed on several major exchanges, the impact of a potential Coinbase listing may not be as pronounced as it would be for a newly launched token.