Messari: Coinbase Effect Brings Average 91% Return for New Token Listings

UTC by Bhushan Akolkar · 2 min read
Messari: Coinbase Effect Brings Average 91% Return for New Token Listings
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The Messari study showed that Coinbase listings bring much more returns to investors in comparison to other exchanges like Gemini, Binance, Kraken, FTX, and OKEx.

One of the world’s largest crypto exchanges Coinbase has grown phenomenally over the last few years. As of date, Coinbase contributes to a majority of the global trading volume and is a preferred choice by institutions. As per the recent study from Messari, the ‘Coinbase Effect’ has helped new tokens listing significantly.

Details of Messari Report on Coinbase

The study also points out that average token returns with Coinbase listing have been a massive 91%. ‘Coinbase Effect’ is a popular theory in the crypto space that states that token prices tend to experience a quick prop after Coinbase listing. The Messari study notes that the impact of new crypto listing on Coinbase is much higher than over other exchanges like Gemini, Binance, Kraken, FTX, and OKEx.

In the recent newsletter “The Crypto Exchange Pump Phenomenon”, Messari analyst Roberto Talamas writes:

“Coinbase listings have the highest average return standing at 91%, but also have the widest distribution of ranging from -32% to 645%. The economic rationale behind the effect is straightforward. When a cryptocurrency is listed on a popular exchange it immediately gains exposure to a new set of market participants.”

The recent example of Coinbase listings gaining significantly is Cardano’s ADA cryptocurrency. Filecoin (FIL) has jumped 6x since its listing last December 2020. The recent additions to the Coinbase platform are Ankr (ANKR), Curve (CRV) and Storj (STORJ).

Coinbase Pro Announces Support for 1inch, ENJ, NKN, and OGN

As it happens, Coinbase Pro has currently announced its support for 1inch, Enjin Coin (ENJ), NKN, and Origin Token (OGN). All these tokens will be available for trading starting April 9th. However, before that, users can continue transferring these tokens to the Coinbase Pro account.

All of these tokens have registered significant rally in the last 24 hours. 1INCH has surged 13.5% while, ENJ (16.7%), NKN (50%), and OGN (37.7%). The trading on Coinbase shall start only subject to enough liquidity conditions. However, with Coinbasse, these things won’t be much of an issue.

Coinbase is now the first crypto firm making its way to Wall Street next week. Coinbase’s COIN shares shall be listed on the Nasdaq exchange on April 14 as per its regulatory filing with the US SEC. As per the last update, Coinbase’s valuations currently stand at $68 billion.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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