Coinbase Suffers Backlash Based on Recent Acquisition

Memeinator Coin
NEXT 100x PRESALE?
Memeinator Coin
NEXT 100x PRESALE?

Coinbase Suffers Backlash Based on Recent Acquisition

By Benson Toti - min read

On February 19th, Coinbase announced the acquisition of Neutrino, a blockchain intelligence firm. Since then, the company has received significant pushback from customers who believe Neutrino to be an untrustworthy company.

As a major United States cryptocurrency exchange, Coinbase users expect to be able to have a high degree of trust in the company. If they wanted risk, they would go for a cheaper exchange that had a higher degree of risk involved in the platform.

The Neutrino acquisition is meant to help augment the current Anti-Money Laundering and Know Your Customer technology. The technology is said to be best-in-class and represent a strong strategic move by internalizing those tools.

Neutrino’s Management is in Question

The main issue with Neutrino is senior management and the actions they’ve taken in the past. The co-founders were previously involved in a commercial software firm called Hacking Team, which has been known to work with international governments and enforcement agencies. Hacking Team used to produce spyware to help authoritarian governments spy on their citizens, and has been named one of the top 5 corporate enemies of the Internet.

Since the announcement, a “#DeleteCoinbase” hashtag has gained momentum. The trustless nature of Bitcoin is very important to users and part of what makes it special. As with many of these trends, it is difficult to tell who is following through and who isn’t, but it definitely isn’t getting Coinbase more users.

Coinbase’s Director of Institutional Sales, Christine Sandler, has justified the controversial acquisition with the revelation that the previous client data providers they were using had been selling Coinbase user data to outside sources.

“It was important for us to migrate away from our current providers. They were selling client data to outside sources and it was compelling for us to get control over that and have proprietary technology that we could leverage to keep the data safe and protect our clients.”

This is a wild way to justify the acquisition, since it is technically a scandal in itself. Privacy is a major consideration within the Bitcoin world. Although some investors are just looking for an astronomical return, many of them are also investing with the belief that a more private, censorship resistant coin is the way of the future. If Coinbase essentially compromises this with bad practices, then these customers will not feel safe using them.

Long-Term Implications

The technology may be essential, and it could be possible that senior management and talent has no effect on the way Coinbase will be run in the future, but it is definitely a suspicious, if dubious, choice. Coinbase has said they were aware of these people’s actions, and reviewed as part of their due diligence, but did not foresee to be a problem.

All of this comes as additional controversy arises surrounding Coinbase’s listing of Ripple. XRP has been shown to violate some of Coinbase’s listing parameters by having more than a minority stake held by the team. Ripple holds approximately 60% of the supply, which is another part of the continuing controversy surrounding the coin. Additionally, Coinbase has had to come out and say they do not make decisions for whether Ripple is a security or not, as they “are not securities lawyers”.

1
Min. Deposit
$ 10
Promotion
User Score
5
Up to $240 bonus!
Build a diversified portfolio with crypto, stocks, and ETFs — all in one place.
Trade on the world's leading social trading and investing platform
Visit Site
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card, Wire Transfer
Full Regulations:
CySEC, FCA
2
Min. Deposit
$ 100
User Score
4.8
CFDs on BTC, ETH, LTC, NEO, XRP, IOTA, EOS, BAB, ADA, TRX, XMR
No need to open a crypto exchange account or use a special wallet
Regulated Broker - FCA, ASIC, CySEC (license number 250/14)
Visit Site
Description:
Plus500 is a leading provider of Contracts for Difference (CFDs), delivering Leveraged trading on +2,000 financial instruments, including Forex, Commodities, Indices, Shares, Options and Cryptocurrencies. CySEC license number (#250/14)
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card, Visa, Mastercard, American Express, Trustly, Apple Pay, Google Pay, Discover, Bank Transfer: SEPA, Bank Transfer: FPS, skrill
Full Regulations:
ASIC, FCA, FSA, MAS, CySEC #250/14
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$ 0
Promotion
User Score
4.95
Get insights from millions of investors, creators, and analysts
Build your portfolio of stocks, ETFs, and crypto–all in one place
No minimum deposit
Visit Site
Description:
Public is an investing platform that allows you to invest stocks, ETFs, crypto, and alternative assets like fine art and collectibles—all in one place.
Payment Methods:
Debit Card, Wire Transfer, Check, Bank Wire
Full Regulations:
Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.
4
Min. Deposit
$ 1
Promotion
User Score
4.65
0% deposit fees, 0% withdrawal fees, 0% trading commissions
Set up automated trades and up to 50 limit orders with ease
Buy and sell 90+ cryptos and utility tokens, precious metals and national currencies with as little as $1
Visit Site
Description:
Create your account in minutes and start trading 90+ cryptos and other assets on the most flexible trading platform.
Payment Methods:
Full Regulations:
5
Min. Deposit
$ 50
Promotion
User Score
4.6
Log in using the app and claim the Mystery Box to receive up to $10,000 in reward
One of the top digital asset exchanges by trading volume
Serving millions of users in over 100 countries
Visit Site
Description:
OKX is a world-leading cryptocurrency exchange, providing advanced financial services to traders globally by using blockchain technology.
Payment Methods:
Bank Transfer, Debit Card, PayPal, neteller, Credit Card, Wire Transfer, Visa, Mastercard, American Express, AdvCash, AliPay, QIWI, WeChat, Discover, Banxa, Simplex, Mercada Pago, PicPay, Bank Transfer: SEPA, Easypaisa, Esewa, FasterPay, Gcash, IMPS, Interac e-Transer, Itez, JazzCash, Mercuryo, Monese, MoonPay, Naqui, Papara, PIX, RAAST, Safaricom, Wise, Zain Cash, Zen, Cash App, M-PESA, PhonePe, Tinkoff, Vodafone Cash, Bank Transfer: UPI, Payoneer, Paytm, skrill
Full Regulations:
Trading in digital assets is considered high risk. Digital assets are NOT backed by any government or central bank. The risk of loss in trading or holding digital assets can be substantial. You should carefully consider whether interacting, holding, or trading digital assets is suitable for you in light of your financial condition.
6
Min. Deposit
$ 0
Promotion
User Score
4.55
Nexo is the world's largest and most trusted lending institution in the digital finance industry
Available in 200+ jurisdictions
Earn daily interest on your crypto
Visit Site
Description:
Since 2018 Nexo has strived to bring professional financial services to the world of digital assets. Leveraging the best of the team's years of experience in FinTech along with the power of blockchain technology, Nexo empowers millions of people to harness the value behind their crypto assets, shaping a new, better financial system.
Payment Methods:
Bank Transfer, Debit Card, Credit Card, Apple Pay, Google Pay
Full Regulations:
7
Min. Deposit
$ 5
Promotion
User Score
4.5
Combines a user-friendly platform and low fees
Largest digital asset exchange in the Netherlands
Trade over 50 digital assets and pay a maximum trading fee of 0.25%
Visit Site
Description:
The Bitvavo platform was launched in 2018, with the goal to bridge the gap between traditional currencies and digital assets. Bitvavo is making digital assets accessible to everyone, by offering transparent fees, a wide range of assets and an easy to use platform.
Payment Methods:
Debit Card, Credit Card
Full Regulations: