‘Coinbase Effect’ Means Average 91% Token Price Gain in 5 Days, Messari Says

In cryptocurrency markets they call it the “Coinbase effect” – the theory that up-and-coming digital tokens like cardano tend to experience a quick price pop after they’re listed on the big U.S. exchange Coinbase.

The phenomenon has been exhaustively researched and chronicled, and it happened recently after the digital-token cardano (ADA) listed on Coinbase. But now the cryptocurrency analysis firm Messari has conducted a fresh study looking at the price pops of tokens on Coinbase during their first five days of trading, compared with the impact of listings on other big digital-market venues including Binance, FTX, OKEx, Kraken and the Winklevosses’ Gemini.

The conclusion? The Coinbase effect is quite real.

“Coinbase listings have the highest average return standing at 91%, but also have the widest distribution of ranging from -32% to 645%,” wrote Roberto Talamas, analyst at Messari, a cryptocurrency research firm in newsletter post titled “The Crypto Exchange Pump Phenomenon.”

Recent Coinbase listings include cardano along with ankr (ANKR), curve DAO token (CRV) and storj (STORJ). Filecoin (FIL) is up sixfold since it appeared on the San Francisco-based exchange in December.

Cardano, for its part, jumped 36% in two days on the rival Kraken exchange when Coinbase announced March 16 it planned to list the token, though some of those gains reversed on March 18 when trading actually started on Coinbase. (Messari’s analysis looked at the token performance during the first five days following the listing, rather than from the date of the announcement.)