Hey, just wanted to add this here. Prompted by the latest video from Coin Bureau about the “Coinbase effect”. Also, this layman article sums it up nicely:
A report released last month by the crypto research firm Messari found that assets listed on Coinbase had an average gain of 91% in the five days after the listing announcement. That said, the number masks a wide variance in outcomes that is severely skewed by a few outliers. Performance ranged from a 32% drop to a 645% gain. After removing the outliers, Messari found that the average gain was 29%.
This article goes into more depth.
Buy why I’m posting this, aside from the obvious positive efftect of listing the token on the CEX, is this:
It’s not just the price effect that matters. A Coinbase listing can open tokens to millions of new users — 56 million people had Coinbase accounts at the end of the first quarter.
That means, A LOT of people are going to reach idle.finance website, gov forum, discord, telegram.
I’d encourage to revisit all those, and improve them, before actually getting listed on CEX, as we will experience a huge spike in traffic. And we want the conversion rate to improve. That is the % of people who, after visiting one of the channels, become investors (or stakers).
If for example 1% of visitors become Idle investors, increasing that percentage to 2% is going to be significant. There is no doubt that the listing will greatly increase the number of users, stakers, and the price of Idle. But there’s a huge opportunity cost if conversion rate improvements didn’t take place. Meaning, the “missed potential gains”. Worse yet, the opportunity cost wouldn’t even be measured, and we wouldn’t even be aware of it, as that scenario didn’t even happen in that case so there’s nothing to compare it with. But, the opportunity cost is real.
We’ll get a huge short-term boost in traffic, and we should be prepared for that with activities I posted about before (the boost not just from listing on CEX-es, but any other PR activity, but I’m pointing that out specifically before getting listed on CEX, as that reach increase will be huge compared to other potential activities). Besides improvements on the front-end of the website, the advanced analytics should probably be set up, as well as improvements to perhaps Discord/Telegram groups. To get them more organized and be ready for an insurgence of incoming users (ex. of good Discord channel I personally like is the Index Coop discord group). Ranging from organizational improvements, support on those channels, and perhaps some other stuff I might be missing. But those might be minor improvements.
Just putting it here, so there’s awareness that it should be done before getting a lot bigger exposure. And all those improvements are a process, and they will take time. So it could be taken into account while planning the CEX listing.