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Coinbase Users Continue Berating Exchange for Poor Support and Fund Mismanagement

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The growth of the digital asset world resulted in its peripheral industries picking up steam from all directions. Apart from the updates and developments, the cryptoverse has also been witness to news reports involving exchanges mishandling user funds. Coinbase came under fire for the same reason recently when multiple users raised complaints on Twitter.

Since 2016, Coinbase has had over 11,000 tickets raised against it. Coinbase chief executive Brian Armstrong mentioned the ongoing stalemate by claiming people don’t need to be scared of crypto like the old days. This however did not change the fact that thousands of new users have held the exchange culpable to massive fund losses.

In a report about Coinbase’s reaction towards the complaints, CNBC mentioned:

“Interviews with Coinbase customers around the country and a review of thousands of complaints reveal a pattern of account takeovers, where users see money suddenly vanish from their accounts, followed by poor customer service from Coinbase that made those users feel left hanging and angry.

Some reports from earlier this year touched on cases of funds mysteriously disappearing from their accounts. Just this March, a user sued Coinbase after losing over $100,000 from their cryptocurrency savings. This was one of several cases with some still unsolved.

Large groups of the cryptocurrency community pointed out that Coinbase only took up the complaints brought up by users with a significant number of followers. The Brian Armstrong-led exchange has reverted to some individual complaints. According to policy, Coinbase’s insurance policy does not cover theft from said accounts.

Coinbase user becomes trillionaire overnight as exchange rushes to fix error

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With the influx of thousands of new users, several cryptocurrency exchanges were finding it harder than before to handle transactions and peripheral activities. Although most issues are rectified by exchanges, some stand out because of their sheer absurdity as was the case with US citizen Christopher Williamson and Coinbase.

On June 24, Williamson woke up to find out that his Coinbase cryptocurrency trading portfolio was worth more than a trillion dollars. Technically this would have made him the world’s first trillionaire but it wasn’t meant to be as he raised the issue on Twitter with a wishful message for Coinbase.

He asked Twitter to explain what had happened to his $20 cryptocurrency purchase overnight and jokingly pondered about putting off his “penguin-shaped megayacht” purchase. According to reports, Williamson was one of several Coinbase users who suffered a display error on their ERC20 tokens during the past week.

Coinbase’s support team was quick to respond to Williamson’s query as they asked him to hold off on his mammoth purchase. The company had tweeted:

Sorry — the penguin yacht may have to wait — our team is aware of the display error causing this wishful thinking for some ERC20s. They’re working to fix — in the meantime, trading the asset will reflect its current market value

Williamson, a nursing student, had purchased $20 worth of RocketBunny to test the portfolio and the deflationary token. The cryptocurrency came into public light when it claimed to one day become bigger than Bitcoin and Ethereum. The cryptocurrency has a maximum supply of 777 quadrillions and had received rave reviews from new entrants to the market. Each RocketBunny transaction incurs a 4 percent tax that is distributed in four equal parts to the participants.

One-fourth goes to the holders while the rest of the parts are distributed equally amongst the Rabbit Hole, locked liquidity, and bonuses. As volume increases, the amount burned increases logarithmically which in turn leads to an exponential decrease in supply. At the time of writing, RocketBunny was trading for $0.00000000036 with Williamson’s news acting as a launching pad for the price. Ever since the news broke, the cryptocurrency saw a 9 percent increase in its value.

Dogecoin [DOGE] rallies by 15% after Coinbase Pro launch

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The cryptocurrency exchange, Coinbase has announced the launch of Dogecoin [DOGE] to the user of its professional trading platform on Tuesday. Coinbase Pro’s official blog post stated that enabling the transfer of DOGE into their pro account ahead of trading.

The support for the meme-coin will be available in supported jurisdictions of the exchange while trading will initiate on or after 9 AM Pacific Time [PT] on the 3rd June if liquidity conditions are met. The company revealed that it would stagger the launch of the crypto’s and went on to add that,

“Once sufficient supply of DOGE is established on the platform, trading on our DOGE-USD, DOGE-BTC, DOGE-EUR, DOGE-GBP, and DOGE-USDT order books will launch in three phases, post-only, limit-only and full trading.”

However, the platform did not reveal whether Coinbase would unveil Dogecoin to its retail platform or mobile application. Generally, the exchange is known to add crypto-assets to its retail platform a few weeks after first listing on its Pro version.

This comes a month after CEO Brian Armstrong first teased the listing of the meme coin on the exchange platform during an earnings call.

Currently, many in the community use the Robinhood app as well as Gemini for the purpose of buying and selling Dogecoin. However, Coinbase has opened the cryptocurrency to a whole new base of people. The exchange recorded over 43 million unique users in 2020. Moreover, around 3 million of those users were processing transactions every month.

Dogecoin Jumps By Over 15%

DOGE
Dogecoin [DOGE] rallies by 15% after Coinbase Pro launch 2

The listing on Coinbase Pro was a major boost for Dogecoin’s price. The development triggered a surge of 15% over the past 24-hours in the cryptocurrency which was necessary to build an upward momentum after days of maintaining a low profile since the disastrous market crash.

However, Dogecoin bounced back and was now trading at $0.369. It even surpassed XRP after the latest uptick to reclaim the spot of the sixth-largest crypto-asset by market cap on the leaderboard.

Cardano [ADA] Becomes 3rd Largest Crypto After Coinbase Support

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One of the world’s largest cryptocurrency exchanges, Coinbase Pro announced adding support for Cardano [ADA] on the 16th of March. Currently, the platform will roll out trading for four pairs including USD, BTC, EUR, and GBP, which will commence from the 18th of March if sufficient liquidity conditions are met.

The official press release also revealed that the order books will launch in three phases; post-only, limit-only, and full trading. Coinbase Pro further stated,

“If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book in one state for a longer period of time or suspend trading as per our Trading Rules.”

The San Francisco-based cryptocurrency giant also notified that it will only support withdrawals to Shelley addresses [i.e., addresses that start with addr1]. While full support for all Cardano addresses, including Byron and Shelley, will be launched shortly. However, support for the crypto-asset is not yet available on Coinbase.com or through its Consumer mobile apps.

Shortly after the announcement, IOHK CEO, Charles Hoskinson said,,

“I would like to be the first person to welcome Coinbase to the Cardano family. It has been a great relationship and the team that we work with for Rosetta support amongst other things has been absolutely exemplary and professional. I am so happy to see the announcement today. It has been a long road, a lot of very hard work went into that. It’s the beginning of, I believe, a great relationship which is going to extend throughout the years.”

Cardano’s [ADA] Price Skyrockets

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Cardano [ADA] Becomes 3rd Largest Crypto After Coinbase Support 4

Over the past couple of months, Cardano [ADA] has climbed significantly in the crypto ladder owing to several notable milestones with respect to the underlying blockchain. However, the latest uptick came in response to the Coinbase Pro listing news, as ADA’s value surged by almost 24% over the past day.

It was trading at $1.26, at the time of writing. The crypto-asset rose to the third position in the leaderboard trailing behind Bitcoin and Ethereum respectively. According to the latest stats, it held a market cap of $40 billion and recorded a trading volume of $10.7 billion over the last 24-hours.

Coinbase Buyers Catalyze Bitcoin’s Frantic Bull Run Above $34.5k

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Over the past several weeks, Bitcoin has gone ballistic!

The crypto-asset has been soaring like never before. At the time of writing, Bitcoin just blasted past $34,500. This has triggered a sentiment of high accumulation, especially among the Coinbase Pro users.

The buyer activity on the cryptocurrency exchange saw a massive uptick as Bitcoin crossed $32K for the first time ever. According to the on-chain data on Crypto Quant’s chart, wealthy investors continued to pursue the world’s premier cryptocurrency as it established a new peak almost every day.

Coinbase Pro recorded an outflow of more than 35k Bitcoins which was worth well above $1 billion. It is important to note that Coinbase Pro is a US-based institution-focused cryptocurrency exchange. The demand grew from larger investors and corporations in the region who were attracted by its perceived inflation-hedging qualities and potential for quick gains. Hence, Bitcoin extending its record-smashing rally, further led the institutional investors to ride on a fresh FOMO-fuelled bull run thus driving the accumulation trend.

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Large outflows from Coinbase Pro, such as this one, generally end up in the platform’s cold wallets for the purpose of custody. This is directly integrated with the platform’s over-the-counter [OTC] desk from where the big investors such as institutions normally transact over-the-counter to steer clear of affecting the price of the spot market.

Reacting to the charts, Ki-Young Ju, the CEO of Crypto Quant tweeted,

“Another insane Coinbase outflow. 35k BTC. Institutions FOMO buying”

Investments of this magnitude essentially signaled strong confidence among the market participants that the crypto-asset was being considered as a good hedge against potential inflation while offering a solid price appreciation over time.

The Compelling Case of Bitcoin

BTC

Looking carefully at the trend, it can be safely said that the latest bullish sentiment will eventually propel a broader market-wide rally. The meteoric rise was first triggered by COVID-19, however, several other factors have played important roles. For one, inflation and the lowering of purchasing power in the middle of huge stimulus spending led people to store-of-value assets, including Bitcoin.

It was not just the retail investors that have expressed confidence over the cryptocurrency, The rising concerns over potential inflation in response to an increase in US Dollar printing by the Feds; high net investors, both public and private were accumulating Bitcoin instead of cash primarily because of its distinctive characteristics that it has a verifiable scarcity, unlike fiat.

Coinbase Pro Announces Disabling Margin Trading In Response To CFTC Guidleines

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Cryptocurrency exchange, Coinbase Pro revealed that its customers currently using margin trading will not be able to place new margin trades starting 2 pm PT on the 25th of November. The existing margin positions of the customers of the platform that were created before this period will not be affected.

Moreover, at the expiration of the users’ loan term [25th day from the date of origination], the positions will be closed out by selling crypto for the value of the loan. Once the loan is closed, the customer will not be able to enter into a new margin position, nor will Coinbase Pro be able to enter into a position on the users’ behalf.

In an official blog post, Coinbase Pro revealed disabling margin trading for its uses, a step that was taken in response to the new guidance from the Commodity Futures Trading Commission [CFTC].

Margin trading is often deemed as a high-risk trading method. On the plus side, it enables traders to access greater sums of capital, thus allowing them to leverage their positions. Hence, margin trading amplifies trading results so that traders are able to realize larger profits on successful trades. This ability to expand trading results makes margin trading very popular.

But margin trading does have the obvious disadvantage of amplified losses in the same way that it can increase gains as it introduces the possibility of losses that exceed an investor’s initial investment.

As notified by Paul Grewal, the Chief Legal Officer of the San Francisco-based trading platform, all open limit orders will be canceled for customers using credit at this time. Furthermore, the product will be taken offline in December once all existing margin positions have expired.

Grewal went on to say that,

“We believe clear, common-sense regulations for margin lending products are needed to protect and provide peace of mind to U.S customers. We look forward to working closely with regulators to achieve this goal.”

While Coinbase Pro cited guidance around “actual delivery” of digital assets as the reason but did not specify which aspect of it led to its shutting down the service indefinitely. Earlier this year, the commission had clarified its stance on the “actual delivery” of assets seeking to include crypto purchased using leverage trading or other methods. The CFTC’s guidelines revealed that there would be a 28-day deadline for physical delivery, which essentially allowed buyers to use any purchased digital asset after that period.

The guidelines also meant that “actual delivery” has occurred when a buyer controls the digital asset purchased, and the seller has no control over it. Coinbase had previously raised concerns over the same in a letter to the commission.

Uniswap Records More Trading Volume than Coinbase Pro; But Will the Hype Sustain?

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Fueled by the DeFi frenzy, Uniswap, a decentralized exchange [DEX] on Ethereum has hit a fresh ATH of $1.828 billion in terms of the total value locked. The platform, which happens to be the world’s largest DEX in terms of its volume has managed to outpace some of the industry’s crucial centralized rivals such as Coinbase Pro whose 24-hour volume at the time of writing stood at $704.34 million.

DeFi Pulse 1

So how did it achieve such feet? Uniswap, the star in the Ethereum world, first saw a massive rise in July 2020. This was when total capital locked up in Uniswap grew by a staggering 200% in a little over a month. The protocol rose to fame in such a short duration of time primarily because of three key factors decentralization, trust in the platform, and accessibility of all ERC 20 tokens. The fact that many small to mid-cap DeF tokens actively traded on Uniswap, especially those not listed on major platforms further extended its popularity.

Centralization concerns

Uniswap’s launch of V2, which introduced new features, came in as a blessing for the ecosystem as by that time the DeFi craze in the community had already taken off.

However, there was a growing concern among the community members that Uniswap was growing away from its guiding principle of decentralization. The venture capitalists [VC] funding worth $11 million was a major controversy that catalyzed the already existing concerns. However, it was not just the involvement of the VCs that gave rise to skepticism, but also the argument that the liquidity providers [LPs] were not highly rewarded as many of them would have liked.

With the introduction of the whole new yield farming protocols, people expected higher returns on staked funds, and that is where Uniswap struggled.

And then entered Sushi 

Led by a figure under the name of ‘Chef Nomi’, Sushi is essentially a fork of Uniswap. What bootstrapped Sushi’s adoption was its goal to solve the former’s centralization concerns as well as incentives for LPs. The native SUSHI token was aimed at providing the holder with governance rights as well as revenue share.

Its official announcement detailed,

“With SushiSwap, one can also provide some liquidity into a pool and earn rewards in the form of SUSHI tokens. However, unlike Uniswap, those SUSHI tokens will also entitle you to continue to earn a portion of the protocol’s fee, accumulated in SUSHI, even if you decide to no longer participate in the liquidity provision. As an early adopter to help provider liquidity, you become a significant stakeholder of the protocol.”

Despite the fact that Sushi can potentially take over an alarming amount of liquidity from Uniswap, however, it will not cause the latter’s demise. As noted by the recent Glassnode blog post, Uniswap’s brand recognition, third-party integrations, the DEX will “live on”. If further noted Uniswap will almost certainly have enough liquidity and volume to compete against SushiSwap.

Dash might receive a quick boost on Monday as Coinbase Pro decides launch

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The renown digital currency exchange, Coinbase Pro announced to list the top digital currency, Dash on Septemeber 16, upcoming Monday. The currency which is currently valued at $92.23 might get a quick boost in its price once it added to Coinbase Pro.

Coinbase Pro Adding Dash

The announcement revealed on Sept.12 states that the exchange is accepting Dash in supported jurisdictions, except for NY state and the UK. The exchange has said that it will accept deposit ahead of trading – as such, users can proceed to deposit on Monday which will remain active for at least 12 hours and trading will then begin on Sept.17 on or after 9 am PST if liquidity conditions are met. The exchange writes that;

“Once sufficient supply of DASH is established on the platform, trading on the DASH/USD, and DASH/BTC order books will start in phases, beginning with post-only mode and proceeding to full trading should our metrics for a healthy market be met.”

Although Coinbase has over 30 million users, the addition of Dash cryptocurrency will catch the attention of a new audience. On the other side, Dash is currently ranked as 16th largest cryptocurrency, covering the total market cap of $833,591,474. At the press time, Dash experienced a quick surge of 4.73 percent within the past 24 Hrs and trading at the value $92.23 against USD.

However, it’s worth noting that the DASH will be initially available across Coinbase’s supported jurisdictions. Accordingly, users from New York and the United Kingdom aren’t allowed for trading. Other Jurisdictions may be added soon, the exchange said. Moreover, it also revealed that the trading would be available in DASH/USD and DASH/BTC pairs.

But not on Coinbase.com

Dash crypto emerged back in 2014 – henceforth considered as the oldest digital asset in the history of the crypto industry. Despite its existence since 2014, the Dash has been caught with apathetic comments due to its anonymous feature – quite often, crypto twitter compares it with Monero and Zcash citing its anonymity. This is one of the primary reasons why many exchanges step back to list Dash.

Dash’s listing on Coinbase pro doesn’t mean that the coin will be available on Coinbase.com or its consumer mobile apps. However, the blog further reads that they will be a separate announcement if the exchange decides to launch Dash on Coinbase.com.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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Tezos soars 30% in a week as Coinbase Pro adds it to supported assets list

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Despite the halt in cryptocurrency price rise that took place earlier this year, coins remained relatively high-valued, especially when compared to their prices from the start of this year. This has made them attractive to traders and investors, and new listings on cryptocurrency exchanges are continuing as always.

The most recent development of this kind was reported only a couple of days ago when Coinbase Pro announced that it would add a new cryptocurrency — Tezos (XTZ) — to its list of supported assets. The exchange’s professional trading platform’s announcement was followed by a sudden surge of XTZ price, while investors and traders were thrilled to hear the news.

In their blog post, Coinbase Pro officials stated that the launch would take place in four stages. The first one will be transfer-only, followed by post-only, limit-only, and finally, full-trading mode. Each of the phases will be announced by Coinbase Pro via Twitter.

Coinbase is the biggest and most popular cryptocurrency exchange in the United States, as well as one of the biggest and most popular ones around the world. Its Coinbase Pro has an excellent reputation of its own, and its decision to list Tezos had quite positive results.

Tezos (XTZ)’s price sees a major surge

Similar to many other cryptocurrency projects, Tezos uses PoW to offer smart contract and provide protocol upgrades by generating activities of blockchain participants. Following the Coinbase Pro announcement, XTZ price surged from $1 on July 30th to $1.50, today, which is its highest price since June 1st. This is still not Tezos’ highest peak in 2019, as the cryptocurrency previously hit $1.78 in mid-May – but it still is not far off.

Even so, the fact that XTZ followed Bitcoin’s crash in June means that many who held XTZ managed to make a decent profit after the new development. The price soared by 16.4%, and Tezos holders were quick to cash out.

Since Coinbase Pro has a lot more users than most typical exchanges, this was a big deal for both entities. There is a lot more liquidity, which will allow the coin to avoid wild price fluctuations in the future, after the initial surge that came as a result of the hype. This is also not the first time that Tezos got in contact with Coinbase’s ecosystem, as XTZ ended up being among the coins that were accepted for Coinbase Custody service earlier this year, in February.

In the near future, Tezos is likely to receive at least two new trading pairs on Coinbase Pro — BTC/XTZ and USD/XTZ. According to the exchange, XRZ will be available in most jurisdictions where Coinbase itself has a presence in. However, this will not include the state of New York, at least not at first.

For now, however, the cryptocurrency communities are celebrating the new move, and there was a significant increase in the XTZ price and trading volume, as mentioned. At the time of writing, the XTZ price sits at $1.46, after seeing a drop of 1.1% in the past 24 hours. The new drop comes as a correction to a sudden surge that came due to the hype, and the price of Tezos is likely to stabilize itself relatively soon.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.