010 - The Coinbase Conspiracy

It's a well know fact, that Coinbase is one of the major cryptocurrency exchanges in the World. It is one of the oldest and largest exchange supporting more than 32 countries with approximately 4 million users around the world. Founded in 2012, Coinbase allows it's customers to buy and sell Bitcoins via many fiat and online methods. On Coinbase, one can buy Bitcoins through Bank transfers, credit cards or even through Paypal transfers. In May 2016, Coinbase also started GDAX, a Bitcoin exchange where users have the ability to trade a variety of digital currencies.

So, Coinbase holds a substantial degree of total Market share and customer base within itself.

Coinbase Went Offline For Hours Without Notifying It's Users

A few months back this 'Largest' exchange suffered the greatest controversy of all time. In June 2017 Bitcoin climbed to it's record high of $3041. But pretty soon, it declined back to almost $2,532 , dragging along with it Ethereum and other stocks.

During it's decline, the largest cryptocurrency exchange Coinbase went offline all of a sudden giving no opportunity to its users and investors to manage their money in that downfall. During that period, major investors suffered huge losses and blamed the exchange for it wholeheartedly. To those obligations and controversy, Coinbase replied that the exchange went offline because of High customer trading requests and hence it needed to go under maintenance. It came back online after all the damage had been done and Bitcoin retreated to $2750.

You know what the Irony was! while CoinBase was offline, a new blockchain based project was having their crowdsale and absorbing most of Ethereum and Bitcoin and also receiving a massive amount in their crowd sale which was $150 Million. That blockchain project was BANCOR (BNT). During the time Coinbase went offline, Bancor set record of highest amount of ethereum and bitcoin received for their Initial Coin Offering (ICO). Because of CoinBase offline issue, most people didn't get the chance to acquire some BNT's for themselves which now has four times the price compared to when it was introduced on the exchange.

Holding a subtaintial position in the market, it was not apt for Coinbase to give such petty explanations for going offline when it's customers needed it the most. This was a highly irresponsible behaviour and was criticised by many at varying point of time. It wasn't the first time Coinbase went offline, Coinbase has a history of going offline during the major Bitcoin events. No one knows why it happens. Whether it's a genuine technical fault or a conspiracy. But it was what it was.

Some Other CoinBase Controversial Points

Apart from this , Coinbase is also suffering from many controversies which everyone should be aware of if you're going to become a part of their customer base and plan to start using their service.

Coinbase Track User's Spending Pattern

Coinbase holds the right to track it's user's Bitcoin spending pattern and also can freeze your account if you try to spend your Bitcoins in some illegal stuff like Gambling or Dark net use.

Irrational Affiliate Reward Progam

Although Coinbase offers one of the most lucrative rewards in their affiliate program, sometimes users don't recieve what they have been promised. It's a major cause of concern because the affiliate program helps contribute in a major way to Coinbase users.

I'd like to conclude saying, holding a major position in Cryptocurrency Market also comes with great responsibility. Going offline for hours without notifying your customers is highly irresponsible and holding all rights to track the spending pattern is something we need to give a thought about.

So, have caution while dealing with CoinBase and decide it's efficacy by yourself.

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Author @cryptonet