Coinbase ranks second when it comes to Crypto Exchanges with the highest trading volume according to CoinMarketCap. Originally, it was meant to trade only with Bitcoin but soon added other altcoins. Keeping that in mind, it is undeniable that it does influence cryptocurrencies. This article will also go through the unintentional outcomes of listing a cryptocurrency.
The Gradual shift towards Altcoins and the Coinbase Effect!
After going through rebranding in May 2016, Coinbase Exchange was called GDAX (Global Digital Asset Exchange) just 2 months prior to adding retail support for Ether. The very next year, it got licenses to trade Etereum and Litecoin along with listing Bitcoin Cash. This prompted an investigation into the company due to irregularity in prices.
As Coinbase started diving deeper into the realm of Altcoins, an interesting point was noted. Cryptocurrencies began to experience a spike soon after they were listed on the Exchange. This seemed like a coincidence at first, but it was validated when Cardano rose by 18% after the listing announcement on Coinbase Pro on March 16th. Bitcoin and Ether also underwent similar price spikes after one day preceding the Coinbase listing on Nasdaq in April 2021. This weird coincidence has been called the “Coinbase effect.” It is unclear as to what is the driver of this particular phenomenon but it is certainly linked to Coinbase.
The Spike of Dogecoin on Coinbase Pro!
On the 1st of June, Coinbase made dogecoin, the meme cryptocurrency that avid followers have desperately waited for available on their platform, Coinbase Pro. Trading was only permitted after June 3rd, assuming liquidity conditions were met, which they obviously were. Dogecoin met with a 20% rise after the much-awaited listing. Most people continued to praise Elon Musk without giving it a second thought. However, this also challenges the idea that Elon is the only one who influences the prices of cryptocurrencies, especially dogecoin.
Shiba Inu, KEEP, and Chiliz rise after listing announcement!
Shiba Inu, KEEP, and Chiliz were made available on Coinbase Pro yesterday, and trading will be permitted tomorrow if liquidity conditions are satisfied. Shiba and Chiliz experienced 33% and 26%, respectively. Shiba Inu is only second to doge when it comes to meme cryptocurrencies. Shiba and Chiliz have both experienced decent growth along the way, especially on the day of the announcement ($SHIB now priced at $0.00000867) and ($CHZ now priced at $0.33).
Published By
DWAYNE D’CUNHA, WRITER ON MEDIUM.
Originally published at https://www.linkedin.com.
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