The "Coinbase Effect" acts as a stamp of approval

Coinbase listings usually determine which coins are accepted in the market and which are not. Cryptocurrencies listed on the US crypto exchange are making significant gains before being officially listed. A Coinbase listing provides a higher return on investment compared to other exchanges like Binance or Kraken. Buy the rumor, sell the news is a strategy that works by many traders intuitively by buying a stock or position. Success in the cryptocurrency space depends on more than technological usability. Instead, it is driven by community engagement, social media perception, and the ability to build a respectable reputation through positive connotation. Coinbase, the leading publicly traded US cryptocurrency exchange, therefore acts as a credibility booster. Impact of Coinbase Stamp on Price Action In 2021, Coinbase demonstrated its impact on the cryptocurrency market by arguably increasing the market value of newly listed coins. The platform has listed projects such as CHZ, DOT, and SHIB that allow users to exchange and send tokens to their wallets. Each time after the announcements, prices increased by at least 10%. Prior to the May drop, newly listed tokens like Polygon (MATIC) traded 59% higher after permission from Coinbase. Messari Research analyst Roberto Talamas highlighted Coinbase's impact on new offerings. He noted that the new offerings "have the highest average return at 91%, but also have the widest distribution, ranging from -32% to 645%." Coinbase's credibility was tested after Dogecoin was listed in May due to high demand from retail customers. Similarly, the listing of the Shiba Inu has also been attributed to increased retail demand. Binance has also listed SHIB and it is said to be due to the increase in earnings as users will be able to trade SHIB tokens in the future as well. Talking about customs depends on the situation. Or

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