May 18, 2022

Messari: New Coinbase listings really do outperform rival exchanges

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Crypto analytics provider Messari has compiled a report concluding that the fabled “Coinbase effect” — the popular belief that new token listings on Coinbase tend to outperform launches on other exchanges — is true.

But the effect is far from consistent, and after controlling for outliers, it’s not as great as many assume.

Messari analyzed the performance of 28 new Coinbase listings over five days against 22 Binance listings, 19 FTX listings, 19 Gemini listings, 14 OKEx listings, and 11 Kraken listings over the same duration.

While the research found that listings on Coinbase had the highest average return at 91%, the effect was far from consistent. The 28 tokens performed anywhere from a 32% loss to a 645% gain after five days. By contrast, new tokens on other exchanges ranged from a roughly 25% loss to a 60% gain with the next best average gain overall for an exchange around 20%.

However, the researchers note external factors drove extreme returns for several tokens shortly after they listed on Coinbase, with Distict0x increasing by 645% and CivicTitle: Messari: New Coinbase listings really do outperform rival exchanges
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Published Date: Fri, 02 Apr 2021 05:29:16 +0100