The “Coinbase effect” has just been observed for two of three tokens freshly listed on the exchange’s Pro platform.
Leading U.S. cryptocurrency exchange Coinbase has announced three new listings on its Pro exchange, predictably causing the tokens’ prices to pump.
On Oct. 19, Coinbase Pro announced new listings in ARPA Chain (ARPA), Bounce (AUCTION), and Perpetual Protocol (PERP). It confirmed that trading will become available on or after 21.00 PT on Oct. 19, provided ample liquidity enters the market. The three tokens will be each paired with USD, EUR, and USDT.
While AUCTION and ARPA rallied during the hours leading up to the announcement’s publication to each gain roughly 25% in the past 24 hours, the news appears to have stirred little interest among PERP traders.
After seeing a slight initial climb at the time of the announcement, PERP has lost 5% in the past 24 hours to last trade hands for roughly $17. PERP is currently down 30.7% from its Aug. 30 all-time high of $24.40, according to CoinGecko.
ARPA Chain, which enables privacy-focused smart contracts and off-chain transactions began to see momentum roughly 9 hours before the official announcement was published. According to CoinGecko, ARPA is up 25% over the past 24 hours and is roughly 8% of its Oct. 13 all-time high.
AUCTION, the native token of decentralized auction protocol Bounce, also surged at the time of the announcement, climbing 23% from roughly $33 to $40 in the past 24 hours.
According to a Coin Metrics report published in June 2020, the impact of token listings on Coinbase Pro is significantly overstated. Concluding that new Coinbase markets typically posted average price movements of around -1% to +14% from ten days before until ten days after the listing announcement.
In April this year, Messari posted a contradictory report finding that the “Coinbase effect” results in new tokens gained roughly 90% on average after five days.