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May 18, 2021
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Pumps in altcoins: would the ‘Coinbase Effect’ be back?

It appears that the listings on the giant Coinbase are again reflecting on the prices of some altcoins, something that has not happened for a while.

A few days ago, on May 14, exchange Coinbase announced the listing for the altcoin Omise Go (OMG), an midcap popular originally launched in 2017, both on its standard trade platform and on the Pro version.

Since then, we have seen a 150% increase in the currency’s price, raising speculation that the once powerful (but not so much lately) “Coinbase Effect” has returned to the cryptos. Such an effect happened since Coinbase is one of the most popular cryptocurrency exchanges in the world and has been very selective when listing altcoins. While most other top exchanges have listed hundreds of other crypto assets, Coinbase has for years only listed projects considered ‘top tier‘.

OMG chart. Source: TradingView.

Before 2018, a listing on Coinbase coincided in parallel with an increase in the value of any altcoin that came in to trading on the platform. But from 2018, with the start of a huge bear market, it seems that the “effect” no longer made sense.

Not everything is successful …

Take for example the Basic Attention Token (BAT), a famous altcoin developed in conjunction with the Brave internet browser. Listed on November 8, 2018, BAT started to skid instead of pump and within a month it had already lost half its value.

BAT chart. Source: TradingView.

More recently, Chainlink (LINK) was listed on Coinbase in the winter of 2019. However, its debut in trading on the platform served as the top of an upward trend and its price quickly fell after the listing.

LINK chart. Source: TradingView.

We will need to keep an eye on the OMG to see if it keeps the pump of 150%. Is this a new top for altcoin or is it just the beginning of a steady earnings season?

Source: Cryptoglobe

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