After receiving unforeseen backing from Coinbase, the largest cryptocurrency exchange in the US, the price of two cryptocurrencies based on Ethereum (ETH) is rising significantly.
Coinbase surprised the market by announcing its support for two Ethereum-based altcoins, Virtua Kolect (TVK) and DIMO Network (DIMO). TVK is a metaverse ecosystem while DIMO aims to enable vehicle owners to earn profits from the data generated by their vehicles.
Coinbase is set to add support for TVK and DIMO on the Ethereum network on Tuesday, provided that liquidity conditions are met.
Following the listing’s announcement, TVK increased 17.67% from $0.453 to $0.53 before reversing course. As of this writing, TVK’s market valuation is about $51.3 million. DIMO is now trading at $0.191 at the time of writing, up 58% since Coinbase’s announcement and 229% over the past seven days.
DIMO will be supported under Coinbase’s experimental category, which is the US exchange reserves for digital currencies with little trading activity.
Throughout the crypto bear market, Coinbase has quickly added new altcoin projects to its listing platform. CEO Brian Armstrong said Coinbase would resemble Amazon but for cryptocurrency assets.
Armstrong has stated that a product with consistent one-star reviews is probably fraudulent or defective, and Amazon may remove it. However, he believes that in the case of cryptocurrency assets, it’s important to let the market decide their value.
Armstrong predicts that there will be millions of these assets over time, and he hopes that the addition of new assets won’t make the news every time in the future.