The crypto money exchange Coinbase is one of the most preferred exchanges with over 43 million users and a total transaction volume of over 455 billion dollars. Coinbase, which applied to the SEC for IPO in December, lists 46 cryptocurrencies. When the exchange announces that it has added a new altcoin to its structure, the altcoin listed is seeing a price rise. So does Coinbase really affect altcoin prices?
Cryptocurrency analysis firm The Tie examined the impact of the Coinbase exchange on the altcoin market. In its review, The Tie compared the performances of the assets listed on the Coinbase exchange 30 days ago and after in 2020. The company revealed that the performance of the altcoins listed on the stock exchange is higher than the others without its announcement.
These 5 cryptocurrencies soared along with our listing
Following the listing on the Coinbase exchange, CVC, DNT, ALGO, OMG and MANA continued to rise for 30 days, but the prices of other altcoins dropped during that time. The Tie stated that two points should be considered in this situation. The first was the date when altcoins were listed on the stock exchange, while the second was the date when the news that altcoins will be listed.
Stating that the altcoin-coinbase18 altcoin was reported about 6 days before being listed on the stock exchange, The Tie said, “Knowing beforehand creates an opportunity for traders.” commented in the form.
There is a difference between announced and unannounced listed altcoins
No announcement was made before ALGO, CELO, UNI, REN, BAL, CVC, MANA, and DNT were listed on the stock exchange. These 8 cryptocurrencies rose the day they were listed, but some fell the next day.
ATOM, KNC, OMG, MKR, COMP, BAND, NMR, LRC and YFI all rose with the listing announcement. UMA fell by 2%. Many of them remained bullish until they were listed on the exchange, but the day after listing all altcoins except OMG saw a decline in price.
“80% of the altcoins listed on Coinbase saw a price increase from the announcement until the day it was listed. The time in between can be interpreted as an opportunity for investors. ”
The unannounced listed were more profitable
The Tie revealed that the altcoins listed without announcement perform 4 times better than others. These altcoins are also experiencing less price loss the next day. In the announced altcoins, it is seen that the earnings are subjected to withdrawal in the process until the listing.
While those listed without the announcement saw a 100% price increase, 70% of the announced cryptocurrencies experienced a price increase. This means that 83% of the 18 altcoins listed have earned a profit.
Users love surprises
Coinbase’s altcoin listing has also been effective on Twitter. For example, on the day DNT was listed, search volume on Twitter saw an increase of 5,939%, and this increase continued for 30 days. When looking at the social metrics, it was seen that the users showed a positive attitude towards these altcoins with the listing and continued this the next day. However, the data showed that users were more negative about the announced altcoins.
“Surprisingly, it can be said that the altcoins added to the stock market create excitement for the users, but the altcoins announced have a negative effect on the users because of the waiting period.