After going through rebranding in May 2016, Coinbase Exchange was called GDAX (Global Digital Asset Exchange) just 2 months prior to adding retail support for Ether. The very next year, it got licenses to trade Etereum and Litecoin along with listing Bitcoin Cash. This prompted an investigation into the company due to irregularity in prices.
As Coinbase started diving deeper into the realm of Altcoins, an interesting point was noted. Cryptocurrencies began to experience a spike soon after they were listed on the Exchange. This seemed like a coincidence at first, but it was validated when Cardano rose by 18% after the listing announcement on Coinbase Pro on March 16th. Bitcoin and Ether also underwent similar price spikes after one day preceding the Coinbase listing on Nasdaq in April 2021. This weird coincidence has been called the “Coinbase effect.” It is unclear as to what is the driver of this particular phenomenon but it is certainly linked to Coinbase.