Cryptanalyst provider Messari has compiled a report concluding that the legendary “Coinbase effect” – the widespread belief that new token entries on Coinbase tend to surpass launches on other exchanges – is true.
But the effect is far from permanent, and after accounting for the emissions, it is not as large as many assumed.
Messari analyzed the performance of 28 new Coinbase lists in five days compared to 22 Binance lists, 19 FTX lists, 19 Gemini lists, 14 OKEx lists and 11 Kraken lists over the same period.
While the study found that Coinbase listings had the highest average return of 91%, the effect was far from sustainable. 28 tokens were executed with a loss of 32% to an increase of 645% after five days. On the other hand, new tokens on other exchanges varied from a loss of about 25% to a gain of 60%, with the second best average return on the exchange being around 20%.
However, the researchers noted that external factors led to high returns for many tokens shortly after they were listed on Coinbase, with Distict0x increasing 645% and Civic 493%.
Under “emission control”, Messari still found new Coinbase lists to surpass other exchanges, with returns ranging from 0% to 66%, with an average of 29% in total.
According to the adjusted data, OKEx came in second on average with tokens gaining almost 20%, followed by Kraken with 15%, FTX with 12%, Binance with almost 0% and Gemini with a small loss.
Coinbase’s influence can be attributed to the stock market’s popularity and its strong brand, or it is a binary product in the US cryptocurrency regulations that prohibits many exchanges and issuers from offering services to US citizens, limiting the ability of private investors to access many alternative digital currencies. . …
Messari Coinbase describes it as “the largest cryptocurrency trader”, suggesting that the average high performance of recently traded tokens can be attributed to US retail investors seeking access to previously inaccessible markets.
However, the report notes: “A listing on Coinbase can have a positive impact on the return on assets, as it does not affect all tokens in the same way.”