Request Network’s token Request (REQ) has increased 314 percent in the last seven days. It is currently trading at $0.27.
Request Network, which debuted in 2017, allows users to send, receive, and fulfill invoices on decentralized networks. Businesses that accept cryptocurrency can invoice their customers using the automated platform in the same way that corporations do in the non-crypto world.
The network is powered by its utility token, REQ. The token went through the same listing process as any other aspiring cryptocurrency: it first traded on DeFi protocols like Uniswap, then on lesser-known centralized exchanges, and finally on big guns like Coinbase.
Some of REQ’s recent surge is due to its recent listing on popular cryptocurrency exchange Coinbase. When a coin is scheduled to be listed on Coinbase, its price often skyrockets; this recurring phenomenon is known as the “Coinbase Effect.”
The effect was first noticed in 2017 when the prices of Bitcoin hard forks Bitcoin Cash and Litecoin doubled after they were listed on Coinbase. When Coinbase lists a coin during a bear market, the effect is a flop, as Dogecoin discovered two months ago when its price barely moved after its listing.
REQ is down 20% since yesterday, indicating large sell-offs following the listing—possibly a case of “buy the rumor, sell the news.” REQ’s price, on the other hand, has risen by 442 percent in the last month.
The “Coinbase Effect” has returned with a vengeance.
REQ, which was launched in October 2017, has a maximum supply of 999,983,984 tokens and burns tokens whenever it is used for e-invoicing. The network charges up to ten cents per payment request and burns an equal amount of REQ to reduce the total supply in circulation.
Coinbase also listed DeFi protocol QuickSwap’s governance token, QUICK, yesterday. With a market cap of $299 million, the token is currently trading for $826, up 21% from yesterday and 144% in the last seven days. QuickSwap was once one of billionaire investor Mark Cuban’s favorite protocols, but he hasn’t said much about it since he was ripped off by a liquidity pool on the protocol (through no fault of QuickSwap).
AXS, the governance token of Pokémon-inspired NFT game Axie Infinity, was also added to Coinbase yesterday. The token, which has a $4 billion market cap, is down 1.3 percent since yesterday but up 64.3 percent this week. It is now worth $70. That represents a massive increase from $4.20 on June 21; the token has risen 1,693 percent since then, reaching an all-time high of $75.73 on August 11.