Coin Metrics: The "Coinbase effect" is temporary

BlockBeats, blockchain data company Coin Metrics report shows that the "Coinbase effect" is temporary, even if the short-term price rise, it cannot be sustained for a long time.

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Coinbase has long been hailed as a price booster for cryptocurrencies. And while the "Coinbase effect" may still exist in some encrypted trading platforms, investors may need to study it more carefully if they really want to chase and capture profits, according to a new report from analysts at Coin Metrics.

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Every time Coinbase plans to put a token online, it goes through two phases: NBSP;

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- Statement on the possibility of going online;

- Confirmation that tokens will be listed.

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Coin Metrics looked at Coinbase's "Assets under review" announcements in three market eras: NBSP;

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-2018, bear market;

- Summer 2019, sideways market;

- Recently, the "jubilant" market.

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Coin Metrics noted that Coinbase's token returns were generally perceived to have been higher in 2019 than in 2018, even though these years of online censorship occurred during a period of falling prices for Bitcoin and most major cryptocurrencies. CoinMetrics found that many assets jumped in price in the 10 days after the launch announcement. But over the course of 100 days, these gains eventually level off (with the exception of OmiseGo's OMG).

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Therefore, Coin Metrics believe that the "Coinbase effect" is most likely to be felt within the first 10 days after listing.

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