Measuring the ‘Coinbase Effect’ – The Block

Quick Take

  • The Block analyzes the impact of the famed “Coinbase Effect” on assets
  • We found that Coinbase listing announcement provides a median return of 7% for an asset
  • However, this effect appears to be short-lived as median returns turn negative after one day 

Coinbase is often touted as a kingmaker of cryptocurrencies due to its outsized role in the U.S. cryptocurrency ecosystem. Before its strategy shift in December 2017, the San Francisco-based exchange had been relatively conservative in deciding which coins get listed on its platform for trading.

Coinbase’s influence in the cryptocurrency industry is so substantial, assets that make the cut often see a large price bump on the day the exchange announces a listing.

Crypto Destroyer

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