{"id":102507,"date":"2019-04-20T06:09:22","date_gmt":"2019-04-20T13:09:22","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=102507"},"modified":"2026-04-28T19:07:19","modified_gmt":"2026-04-28T18:07:19","slug":"coinbase-effect-the-binance-chain-pump","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/coinbase-effect-the-binance-chain-pump\/","title":{"rendered":"There\u2019s a new ‘Coinbase effect’\u2014the Binance Chain pump"},"content":{"rendered":"

Binance<\/a> has set its sights on usurping\u00a0Ethereum<\/a> with its new protocol blockchain.\u00a0Since its launch, Binance Chain has attracted coins away from competitors, pumping the value of coins that switch. Could the \u201cBinance Chain effect\u201d be the new Coinbase effect?<\/p>\n

Since its announcement in 2018,\u00a0Binance Chain<\/a> has been one of the most highly anticipated projects in the crypto industry. The exchange's very own decentralized blockchain platform has now set its sights on surpassing one of the largest cryptocurrency networks in the world\u2014Ethereum.<\/p>\n

\"Mithril
Related:\u00a0Mithril (MITH) becomes the first project to launch on Binance Chain, surges 70%<\/a><\/figcaption><\/figure>\n

Binance has already attracted a slew of existing and upcoming cryptocurrency projects for switching to the new platform.\u00a0Mithril<\/a> was the first project<\/a> to migrate to Binance Chain following its mainnet launch on Apr. 18th.<\/p>\n

The decentralized social media platform saw its native coin MITH nearly double in value the day it launched, jumping from $0.04 to roughly $0.08 in less than 24-hours.<\/p>\n

While MITH's value is stabilizing, the effect of the Binance Chain launch cannot be disputed. This has led some to draw a comparison between the exchange's new decentralized platform and past\u00a0Coinbase<\/a>\u00a0listings.<\/p>\n

Coinbase historically has been the most conservative of the major exchanges in terms of coin listings and represented a large percentage of the US (and global) retail markets. If a coin was listed on Coinbase, it was perceived as a stamp of legitimacy, both from a regulatory and risk standpoint. Thus, whenever a new token was listed on the exchange, its value skyrocketed.<\/p>\n

The phenomenon was described as the “Coinbase effect.” However, Coinbase's power over the market has diminished since its peak in 2018. Now, new listings seem to have little effect<\/a> on a coin's performance now, as was the case with Stellar's XLM<\/a>.<\/p>\n

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$XLM<\/a> added to Coinbase Pro but the pump started a week ago \ud83e\udd14 pic.twitter.com\/tmOFb3KEpk<\/a><\/p>\n

— Rob Paone (@crypto_bobby) March 13, 2019<\/a><\/p><\/blockquote>\n