Mesari saw that Coinbase’s new coin listing actually outperforms competitors’ exchanges. Five days after listing on Coinbase, newly listed coins earned an average of 91%, but that’s not all.
According to Cointelegraph, a cryptocurrency media outlet on the 2nd, it is simply common for cryptocurrency analysis company Mesari to say that the legendary “Coinbase Effect”, that is, coinbase’s new coin listing tends to outperform listing on other exchanges. I wrote a report that concluded that it was a belief.
In particular, the effect is far from consistency, and after controlling for outliers, the effect is not as great as many people think.
During the same period, Mesari analyzed the performance of 28 new Coinbase listed coins in 5 days compared to 22 listings on Binance, 19 listings on FTX, 19 listings on Gemini, 14 listings on OKEx, and 11 listings in Kraken.
As a result of the study, the average return of coins listed on Coinbase was the highest at 91%, but the effect was far from “consistency”. The 28 coins showed wide mobility from 32% loss to 645% profit after 5 days. In contrast, newly listed coins on other exchanges ranged from a loss of about 25% to a profit of 60%, and the overall average return of the exchange reached about 20%.
In response, the researchers pointed out that external factors drove extreme returns on some coins immediately after listing on Coinbase, with Distik 0x up 645% and Civic up 493%.
Also, when “controlling outliers”, Mesari found that Coinbase’s new listing still outperformed other exchange’s newly listed coins, and the yield varied from 0% to 66%, with an overall average of 29%.
In the case of the adjusted data, it was found that in the case of OKEx, newly listed coins rose nearly 20%, ranking second on average, Kraken 15%, FTX 12%, Binance about 0%, and Gemini slightly lost.
The “Coinbase Effect” is related to the popularity of the exchange and its strong brand name, or it has become the mass production of the’US Cryptocurrency Regulations’ which restricts the provision of services to US residents by many cryptocurrency exchanges and issuers. The ability to access altcoins is limited.
Mesari describes Coinbase as “the biggest retailer for cryptocurrencies,” saying that the average performance of newly listed coins on the exchange could be attributed to US retail investors competing for exposure to inaccessible markets. Suggested.
Meanwhile, this report concluded as follows. “Coins listed on Coinbase are likely to have a positive impact on asset returns, but not all coins in the same way.”