The research looked at the distribution of cumulative returns five days after the token listing as a rough estimate, to capture the effect. As was expected, Coinbase listings produced the highest average return standing at 91%, but also have the widest distribution ranging from -32% to 645%.
As evident from the numbers above, Coinbase listings lead to higher returns when compared to other exchanges (Figure 1, left). However, the Coinbase dataset contained some outliers — six listings that produced outsized gains have been highlighted in the second chart to the right (above). These included the following:
- District0x — (645%)
- Civic — (492%)
- Band protocol — (234%)
- The Graph — (169%)
- Numeraire — (167%)
- Skale network — (135%)
Weeding out the effect of these outliers presents a more accurate picture of the listing gains associated with the exchanges mentioned above. Even after taking the outliers out of the equation, it is evident that the Coinbase listing has the highest impact on price among exchange listings with an average five-day return of 29% (Figure 2).
The numbers tabulated as such, suggest that exchange listings, especially Coinbase, more often than not lead to a boost in asset returns. However, one other important factor that needs to be taken into consideration in the tabulation of such results is the general market environment at the time of listing.
For now, the Coinbase effect has solidified its reputation as a benchmark in coin listings. As usual, please don’t consider this as any kind of investment advice and do your own due diligence and trade/invest according to your risk profile.
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Source: https://medium.com/open-source-x/exploring-comparing-the-coinbase-effect-130dee2f65b8?source=rss——-8—————–cryptocurrency
