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Does the “Coinbase Effect” exist? 5 coins in focus

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How did 5 coins behave when they were listed on the Coinbase crypto trading platform? And how have they developed to this day? A look into the past.

“Coinbase Effect”. In the current, comparatively less volatile, market situation, it is worth taking a look at the past. Which coins or tokens have experienced price explosions due to listings on the Coinbase crypto trading platform? Was it just so-called pump and dumps? Or could the price increase be held for 30 days after the listing? Did Coinbase have any influence on the price of newly listed coins in the last bull market? Let’s take a look at five coins and their price history.

5 coins in focus

The Graph (GRT): Price after the Coinbase listing

The listing of The graph was announced by Coinbase on December 17th, 2020. On December 18, the price of the token was around $ 0.262. The next day the price was already at $ 0.492, only to hit an all-time high of around $ 0.764 on December 20. This mark was then broken again on February 12th when the price of a Graph Token was $ 2.84. At the time of writing, the GRT is trading at $ 0.66 – well below the high.

Does the "Coinbase Effect" exist? 5 coins in focus

district0x (DNT)

The volume of this coin was below or near a million US dollars for almost all of 2020. Then, from November 4th to 5th, 2020, the volume rose from $ 99,000 to around $ 8.2 million. During this period, the price rose from $ 0.0099 to approximately $ 0.0196. District0x’s pump peaked for the time being on November 9, 2020 – at $ 0.072 per token, which meant an increase of almost 700 percent. At district0x, however, the upward movement continued and marked an unbroken all-time high on April 19 at 0.4834 US dollars.

Does the "Coinbase Effect" exist? 5 coins in focus

Storj (STORJ)

On March 23, 2021, Coinbase announced the listing of Storj famous. Storj has set itself the goal of offering the user an encrypted and decentralized cloud.

The price on March 22, 2021 was still $ 0.9145 per token and the volume was around $ 76 million in 24 hours. On March 23, 2021, the price doubled to $ 1.76 per token and the volume shot up to $ 1.3 billion.

On March 27, 2021, the price was already at $ 3.16 per token, which meant the new all-time high for the time being. In these 5 days, from March 22nd to 27th, the token price rose by over 300 percent. On March 28, Storj marked the all-time high so far at a rate of 3.91 US dollars. To this day, Storj has not been able to reach this price mark.

Does the "Coinbase Effect" exist? 5 coins in focus

Ankr (ANKR)

Also on March 23, 2021, Coinbase announcedTo list ANKR. ANKR is an ETH token that deals with the topic of Web 3.0 and offers a cross-blockchain DeFi platform with staking functions.

On March 22, 2021, the price of ANKR was still at $ 0.0706 per coin. By March 23, 2021, the coin had risen to $ 0.0938: an increase of around 30 percent. But ANKR had even more breath and on March 27, 2021 moved further north to 0.19 US dollars.

Since the listing, the coin has been able to achieve a price increase of around 200 percent until the end of March – not bad for a few days. But also at ANKR, the period immediately after the Coinbase listing marked the previous all-time high – ANKR has not been able to build on this success since then.

Does the "Coinbase Effect" exist? 5 coins in focus

Curve DAO Token (CRV)

Coinbase announced the listing on the crypto trading platform at CRV on March 23, 2021. Curve DAO is a decentralized exchange for stablecoins.
During this period, the price rose from $ 2.38 on March 22nd to $ 2.89 on March 23rd, 2021. A pump of around 20 percent.

Does the "Coinbase Effect" exist? 5 coins in focus

Coinbase effect: a conclusion

Basically, it should be noted that the so-called “coinbase effect” was observed in the five examined coins. The prices usually rose by at least 10 to 20 percent immediately after the listing. At times the profits even exceeded 100 percent.

And how does it look today? The Graph (GRT) stands at $ 0.663 at the time of writing. In contrast to the price immediately following the message from the Coinbase listing, The Graph is up around 540 percent. The price of district0x was $ 0.01965 after the Coinbase listing on November 5, 2020. Today you can buy a DNT token at a price of 0.1387 US dollars – an increase of around 700 percent since the listing.

It looks different with Storj: If you had invested on March 23, 2021, when Coinbase announced the listing of Storj, you would have only $ 0.9935 of the originally paid 1.79 US dollars per token, about 45 dollars Percent less.

It looks similar at ANKR. If you had bought ANKR by the time the upcoming launch was announced, you would have made a loss today: ANKR is at $ 0.096 at press time. A CRV coin could be bought on March 23, 2021 for $ 2.31. Today a coin is worth $ 1.59. A minus of 32 percent.

The “Coinbase effect” definitely applies in the short term – at least in the examples presented here. Over the first days to weeks, the five newly listed coins were able to record profits. In the long term, however, it looks partly different. A price increase over several months was not guaranteed. It depends on various other factors, such as the time of entry, whether the overall crypto market is more in a bull or a bear market at the time of listing, whether it is worthwhile, just because of the “Coinbase effect” in a project to get in.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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