The Coinbase Effect of 2017 is No More

Once upon a time in the crypto sector, if Coinbase added your coin/token, then you were guaranteed a 2x+return at least, but with the exchange not making many moves and other cheaper on-ramps coming available it seems the effect has stopped.

Coinbase has been relatively quiet over the bear market with them releasing underwhelming updates and playing catch up to other exchanges in the sector. This was clearly shown in Coinbases 12 days of Christmas event that was lackluster, to say the least.

With the recent announcement of XLM — Stellar Lumens on the exchange the project moved up 1/2 cents in price but if this was when Coinbase was in the top 5 exchanges we would see a 2x at least supporting my argument that the Coinbase effect no longer exists.

The volume on the exchange has decreased over the years from being one of the front runners in the sector to being ranked 40th for volume in the crypto space according to CoinMarketCap.

The exchange itself is easy to use and is very well laid out but the fees you end up paying compared to other on-ramps are a little steep, If Coinbase want to move forward and become a big player in the sector again they need to add more projects the community wants and offer something new no one else does. Until this happens I can’t really see Coinbase listing projects really taking off as they used too.