A few days ago (May 14), the top-rated Coinbase exchange announced its listing of the Omise Go (OMG) altcoin, a popular midcap coin originally launched in 2017, on its Pro and standard trading platforms.
https://t.co/Bxmt9ufhu5$OMG has gone parabolic yet again today, with the #CoinbasePro effect continue to bring greater positive returns to the 39th ranked market cap coin. Now up 26% in the past 24 hours, we are seeing a major social volume and token age consumed, indicating a pic.twitter.com/scDomYOnkv
— Santiment (@santimentfeed) May 21, 2020
Since then, we have seen over 150% increase in the price of the altcoin, prompting speculation that the once-powerful (but lately not) “Coinbase effect” has returned to crypto. The effect occured as Coinbase is one of the most popular cryptocurrency exchanges in the world, and has been rather selective when listing altcoins. While most other top exchanges have listed hundreds of cryptoassets, for years Coinbase only listed top coins.
OMG chart by TradingView
Before 2018, a Coinbase listing had for years occasioned a parallel price rise in the value of whichever altcoin was being listed for trading. But starting in 2018, the start of a huge bear market, it started to seem like the “effect” no longer had any effect.
Take the case of Basic Attention Token (BAT), a popular altcoin developed in tandem with the Brave internet browser. Listing on November 8, 2018, BAT started to slide rather than pump, and within a month had lost over half its value.
BAT chart by TradingView
More recently, Chainlink (LINK) listed on Coinbase in the summer of 2019; but its trading debut served as the top of an uptrend, and its value quickly halved following the listing.
LINK chart by TradingView
We’ll have to keep an eye on OMG to see how it follows through with the initial 150% pump we have seen. Will this be a new top for the altcoin, or just the beginning to a steady season of gains?
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