New token listings gain 91% on average, after five days of launching on Coinbase
A report which concludes that the celebrated ‘Coinbase effect’ and the popular belief that new token listings on Coinbase tend to outperform launches on other exchanges is true, as compiled by Messari, Crypto analystics provider.
However, from the report it is not as awesome as many may assume, because the effect is not really consistent after controlling for outliers.
28 coinbase listings over five days against 22 Binance listings, 19 FTX listings, 14 OKex listings, 19 Gemini listings, 11 Kraken listings performances over the same duration were analysed by Messari.
Though the effect is far from consistent, but the research found that the listings on Coinbase had the highest average return at 91%. After five days, the 28 tokens performed anywhere from a 32% loss to 645 gain. Roughly 25% loss to 60% gain with the next best average gain overall for the exchange around 20% is what what the new tokens from other exchange range from by contrast,
Shortly after being listed on Coinbase, with District0x increasing by 645% and Givic gaining 493% other external factors drove extreme returns for several tokens.
When “controlling for outliers,” Messari still found Coinbase’s new listings outperformed other exchanges, with returns varying between 0% and 66% for an average of 29% overall.
In the adjusted data, OKEx ranked second on average with tokens gaining nearly 20%, followed by Kraken with 15%, FTX, with 12%, Binance with roughly 0%, and Gemini with a slight loss.