Coinbase Bins Bundle Product as Altcoins Get REKT
After 8 months on the market, Coinbase binned its crypto-diversified Bundle product. Does this mean that the altseason is never coming back?
Coinbase Bins the Bundle
Altseason is over and nobody is quite sure when its coming back. Coinbase appears to have received the message, to the extent that the exchange binned its diversified crypto-bundle product. A quick view at the exchanges updated FAQ reads:
Coinbase Bundle purchases have been deprecated, as such all assets purchased in the Conibase Bundle have been redistributed to their respective individual asset wallets.
Coinbase Bundles were meant to provide crypto investors with a diversified digital asset portfolio that could be dollar-cost averaged following the same tactic investors use in traditional asset classes. Initially, investors could throw down $25 to purchase a bundle of five cryptocurrencies which were balanced in proportion to their market cap.
Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin comprised each bundle. In combination with Coinbase Learn and Asset Pages, the bundles were meant to appeal to crypto newbies looking to dollar cost average into long positions without having to conduct an immense amount of technical analysis and research.
When introduced in September 2018, Coinbase said:
The vision of an open financial system depends on peoples ability to understand, explore, and choose cryptocurrencies. We expect that millions of people will make their first cryptocurrency purchase in the coming years. But all too often, getting started can be overwhelming for people learning about crypto for the first time.
Its not Time for Crypto Diversification
While the product cancellation is bound to draw some criticism and possibly even pleasure from those who despise Coinbase, its is probably a wise move to bin the product as altcoins have been pummeled as Bitcoin rallied and corrected.
The crypto-sector is akin to a baby learning how to walk and each company will trial various products and adjust as necessary. The cancellation of Coinbase Bundle also adds credibility to the argument that diversification does not work for crypto yet as the sector remains too volatile at the moment.
Do you think digital asset diversification is a successful investing strategy? Share your thoughts in the comments below!
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