Glossary
Will $NEO and $GAS finally be listed in Coinbase?
People have been asking whether $NEO and $GAS will be listed on Coinbase, the largest cryptocurrency exchange in the U.S., with over 100 million users worldwide.
The listing of $GAS and $NEO coins in Coinbase would increase accessibility to US citizens, the world’s largest crypto consumers, and would also provide a boost in visibility, trading volume, and .
However, there may be several reasons why these coins are not yet listed on Coinbase, including the need for regulatory compliance and the issue of custody.
Why isn’t $NEO and $GAS listed in Coinbase?
In most countries, like the U.S., the law demands that user tokens remain under the custody of another company. They can belong to the same group, but they can’t be the same institution. Having another company adds an extra level of security, preventing theft and situations like we saw with FTX.
These custody companies use specialized hardware to guarantee that user funds are safe. The problem begins when the hardware doesn’t support the network. The existing hardware is likely incompatible since Neo uses its own Virtual Machine, NeoVM.
Neo also uses a different cryptographic curve, secp256r1, instead of the traditional secp256k1 used in Bitcoin and Ethereum. This affects how keys are generated and used.
Since we are talking about equipment, updating it to add Neo support may not be feasible or is extremely expensive. With hardware support, these companies can store customer’s NEO and GAS securely.
Regulatory Compliance
One of the hurdles for any cryptocurrency to be listed on Coinbase is compliance with regulatory standards, especially in the United States. The U.S. Securities and Exchange Commission (SEC) has stringent guidelines to determine whether a digital asset can be classified as a security.
Since $NEO generates $GAS, there may be some arguments for it being a security. However, the new chain will use $GAS and not $NEO. Without a promise of revenue generation, it seems that GAS has a greater chance of being listed.
The Coinbase Effect
Coinbase is the largest US-based exchange. They claim to have over one hundred million users worldwide. Listing on Coinbase significantly boosts visibility and increases trading volume and liquidity due to the large user base.
Historically, tokens have seen their value increase following a Coinbase listing, described as the ‘Coinbase Effect,’ a phenomenon where the price of a cryptocurrency significantly rises after being listed on the exchange.
Coinbase, being a regulated exchange, must ensure that all listed tokens comply with these regulations to avoid legal repercussions. Being listed on the platform is a mark of legitimacy and stability, attracting more investors and users.
How can Neo X change that?
Neo X technology aligns more closely with established blockchain infrastructures like Ethereum and may address some of these issues. Using the Ethereum Virtual Machine (EVM), Neo X adheres to a more universally accepted standard, potentially easing the regulatory review process for listing on platforms like Coinbase.
Making a Neo version that uses EVM will allow tokens to become compatible with existing hardware. Neo X may open multiple doors for Neo, like being listed in Coinbase.
Increased Interoperability with Neo X
Moreover, Neo X could enhance Neo’s interoperability with other blockchains, further increasing its interoperability and adoption by exchanges and users. This is a relevant factor in the blockchain ecosystem, enabling asset transfer and communication across different networks.
It’s also worth mentioning that EVM compatibility will allow existing projects to integrate with the Neo ecosystem, making it reachable to experienced blockchain developers.
Benefits to Existing Tokens
The team has disclosed that there will be cross-chain bridges between the two chains for all the existing NEP-17 tokens. Any tokens deployed on the Neo network can be migrated to the new .
Getting listed won’t be easy, but it’s a possibility
While the final decision on whether $NEO and $GAS will be listed on Coinbase remains speculative, the development of Neo X is a decisive move toward this achievement.
The unique architecture of Neo, the Neo Virtual Machine, and different cryptographic curves pose challenges for integration with existing custody solutions. However, the new sidechain may fully resolve most of these issues, finally allowing $NEO and $GAS tokens to be listed in the largest U.S. exchange.
