Coinbase's effect on the currency is not strong, mainly because the market is at work.

Coinbase is one of the most influential compliance exchanges in the world, providing multiple French currency channels directly, providing multiple encryption services such as French currency purchase and hosting.

Devin Walsh, an analyst at CoinFund, a blockchain investment fund, said that after researching Coinbase's two currency announcements, he found that although Coinbase announced that it might support a token in the future, it would bring about a rise in related tokens. But this does not last.

She said that although there is a small “Coinbase effect”, other factors such as the macro market environment and the attributes of specific assets have a much greater impact on prices.

In December 2018, Coinbase announced that it may put 31 tokens such as ADA, AE and ANT in the future.

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In August 2019, Coinbase announced that it would be possible to put 8 tokens such as Algo and ATOM in the future.

By checking the monthly performance of the relevant assets from 1 month to 2 months before the announcement (the announcement may be leaked in advance) and comparing it with the Bitwise 20 index. Bitwise 20 is an index of 20 medium-capital digital assets, including ChainLink, ETC, Tezos, Zcash, etc.

She found that the price of these assets seemed to have been rising for a month after the announcement.

However, this is not sustainable. In 2018, these announcements prompted prices to rise only to levels comparable to the benchmark levels, up to 3.4% above the baseline level.

In 2019, this increase was very short, and the price began to fall relative to the benchmark level after 2 months, reaching 13.57%.

Observing individual assets, you will find that there is a big difference between the rate of return and the benchmark level. In these two announcements, the maximum standard deviation of the relative returns (that is, the degree of dispersion of the return on all assets, the greater the standard deviation, the price The difference is greater) in the month after the announcement (23% in 18 years and 27% in 19 years).

TheBlock has also analyzed the coin effect of Coinbase. The report shows that the impact of the announcement on the price seems very short. The median return of the assets mentioned in the announcement is 7%, but the return will become negative after one day.

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