With today’s surprise announcement of Coinbase adding Stellar XLM–and the subsequent disappointing price movement–it’s become more clear that the “Coinbase Effect” has been pruned from the market.
In December 2017, the price of Bitcoin Cash skyrocketed from $2240 to $4330 in the span of 24 hours, constituting a 93 percent appreciation in price in the course of day. While some of that price movement occurred prior to its official listing on Coinbase–leading to the exchange being accused of insider trading–the bulk of BCH’s value increase occurred following its addition to Coinbase.
The end result was the beginning of the “Coinbase Effect,” where cryptocurrency investors looked to the power of the popular cryptocurrency exchange to bring about a significant price boost in new coin listing. In the weeks following the BCH listing, XRP also benefited from an association with Coinbase. While the coin caught fire in the early weeks of January 2018, during which the…
Read Full Story : Ethereum World News