TechCrunch throws shade at Coinbase | Bitcointalksearch.org

o_e_l_e_o

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Quote from: KingZee on December 12, 2018, 08:42:39 PM

After reading the article from @o_e_l_e_o it looks like the "Digital Currency Group" basically has a massive say in the choice of names being added to Coinbase.

Exactly this. It seems like a few key players are essentially using Coinbase to run their own massive pump and dump scheme, or at very least, insider trading scandal.

Quote from: manfredmann on December 13, 2018, 10:14:03 AM

XRP is way better than other crypto being listed. In fact it even surpasses eth now on its marketcap volume and this is a good indicator that the crypto has gone some.good community and support of the project. Well if you wish to earn then invest on xrp trust me you will be able tp double your investment in the near future.

Marketcap is an almost meaningless statistic.

XRP is at least a well known and established coin, regardless of your opinion on it. The same cannot be said about many of the shitcoins that Coinbase are choosing to list. Interestingly however, XRP would also not pass Coinbase's own Digital Asset Framework, given that the very first point (1.1) in the Framework includes that the coin should be decentralized, with XRP most certainly is not.

manfredmann

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XRP is way better than other crypto being listed. In fact it even surpasses eth now on its marketcap volume and this is a good indicator that the crypto has gone some.good community and support of the project. Well if you wish to earn then invest on xrp trust me you will be able tp double your investment in the near future.

nutildah

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Quote from: KingZee on December 10, 2018, 09:04:09 AM

Quote from: nutildah on December 10, 2018, 08:29:14 AM

NEO (NEO) - has potential

I just quickly skimmed some information and news about it, I might spend more time to understand it. Could you give a quick opinion on why do you believe in it?

Its kind of played out to say its the "Chinese Ethereum," but the thing is if the Chinese government ever does come to terms with ICOs then probably a lot of Chinese language-based ICOs are going to start using it to raise sales... I just think it "has potential" but I personally wouldn't invest in it.

One intriguing thing about it is how they separated the whole idea of "gas" into its own cryptocurrency that you need in order to pay for transactions... In theory this is a cool idea because it tx fees aren't inherently tied to the price of NEO, they're tied to the price of another coin, which at the moment, is far less costly than NEO itself.

KingZee

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Check your coin privilege

Quote from: BitHodler on December 12, 2018, 08:08:45 PM

That's what I have been reading about as well, and when you actually start to do your own research, the insider trading accusations start to become more than obvious with the connected market activity.

Some coins have been pumped out of nothing before Coinbase announced they were considering listing them, and later you find out that these coins have been added to Coinbase.

It's pretty shocking that one of the most important fiat entry points is participating in this shady business, because no one gives a shit about coins as 0x and ETC, especially not after the investors are done dumping.

That makes far more sense than the argument that coinbase just want more markets to benefit off exchange fees..

After reading the article from @o_e_l_e_o it looks like the "Digital Currency Group" basically has a massive say in the choice of names being added to Coinbase... I tried to find more information about them, but it looks like they own CoinDesk too? The majority of other blogs are sourced from it..

Their "portfolio" includes a hell of a lot of projects not just limited to coins : https://dcg.co/portfolio/ Even if it doesn't include all the coins coinbase announced, but that might just be because the ones that are included like XRP, Augur, Decentraland are going to be pumped sooner than the others Cheesy

Pretty interesting finds overall.. Good catch o_e_l_e_o

BitHodler

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Quote from: o_e_l_e_o on December 12, 2018, 09:16:18 AM

It is also then revealed that Coinbase investors are also heavily invested in the coins that they have chosen to list: https://beincrypto.com/questionable-coinbase-listing-process-reveals-digital-currency-group-connection/. Given that Coinbase are known to have undertaken shady insider trading surrounding their support of BCH, it isn't exactly a far cry to suspect they would do it again.

That's what I have been reading about as well, and when you actually start to do your own research, the insider trading accusations start to become more than obvious with the connected market activity.

Some coins have been pumped out of nothing before Coinbase announced they were considering listing them, and later you find out that these coins have been added to Coinbase.

It's pretty shocking that one of the most important fiat entry points is participating in this shady business, because no one gives a shit about coins as 0x and ETC, especially not after the investors are done dumping.

o_e_l_e_o

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Quote from: avikz on December 12, 2018, 02:55:05 AM

Please don't think that Coinbase has taken some shady move driven by the profitability because that's how any business functions.

I mean yes, obviously they are a business and their are entitled to make any moves they see fit to increase their revenue. However, these moves are decidedly shady.

They released a framework 3 months ago for what coins they would consider listing, available here: Coinbase Digital Asset Framework. They then come out and list a bunch of coins that do not meet their own criteria. It is also then revealed that Coinbase investors are also heavily invested in the coins that they have chosen to list: https://beincrypto.com/questionable-coinbase-listing-process-reveals-digital-currency-group-connection/. Given that Coinbase are known to have undertaken shady insider trading surrounding their support of BCH, it isn't exactly a far cry to suspect they would do it again.

Kakmakr

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I previously heard that exchanges are charging Alt coins to be listed on their exchange, so this is a quick method for Coinbase to make a few millions by just listing these coins. Huh

They also need some other "new" revenue of income, since transactions are on a all time low now, with the Bitcoin price being this low. So, the quick solution to pay the bills are just to add some other coins with some trade volumes. Roll Eyes

Does this makes sense?

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Quote from: darklus123 on December 11, 2018, 11:33:49 PM

Quote from: o_e_l_e_o on December 11, 2018, 05:20:09 AM

Quote from: franky1 on December 10, 2018, 05:57:14 PM

coinbase is just another subsidiary arm of DCG.co. who seem more interested in the capitalist greed than the bitcoin/blockchain purist mindset.

It is true to say that Coinbase are far more interested in pure profit than they are in being blockchain or bitcoin purists, promoters, or users, but they are not a subsidiary arm of DCG. Digital Currency Group provided early funding to many crypto based projects, including Coinbase, Kraken, Ripple and BitPay, but these projects are not wholly or in part owned by DCG and therefore are not subsidiaries. Having said that, it is very suspicious that Barry Silbert (owner of DCG) is a big promoter of MANA, and apparently bought a ton more over the last few weeks prior to the Coinbase announcing they will start trading it. I wouldn't be surprised if most of the Coinbase staff had done a similar thing. This is exactly what happened during the launch of BCH. They are a shady exchange and there are far better alternatives out there.

Informed,I am not aware of this current moves made by Coinbase but since then coinbase has undoubtedly interested only with their profits. If that is the case then it is not surprising anymore that they will start to make shadu moves for their benefits

Coinbase is a business entity and they will look at their profits first. There's no surprising element behind this decision. There will be hell lot of other coins which we may think good but Coinbase doesn't. However, I don't think Coinbase has dropped the idea of listing other coins as they had decided earlier. They are just taking some cautious move due to the current market situation. Because the market is not going strong for a lot of businesses and probably that's the reason why they want to play it slow.

Please don't think that Coinbase has taken some shady move driven by the profitability because that's how any business functions. Profit and scaling opportunity!

darklus123

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Quote from: o_e_l_e_o on December 11, 2018, 05:20:09 AM

Quote from: franky1 on December 10, 2018, 05:57:14 PM

coinbase is just another subsidiary arm of DCG.co. who seem more interested in the capitalist greed than the bitcoin/blockchain purist mindset.

It is true to say that Coinbase are far more interested in pure profit than they are in being blockchain or bitcoin purists, promoters, or users, but they are not a subsidiary arm of DCG. Digital Currency Group provided early funding to many crypto based projects, including Coinbase, Kraken, Ripple and BitPay, but these projects are not wholly or in part owned by DCG and therefore are not subsidiaries. Having said that, it is very suspicious that Barry Silbert (owner of DCG) is a big promoter of MANA, and apparently bought a ton more over the last few weeks prior to the Coinbase announcing they will start trading it. I wouldn't be surprised if most of the Coinbase staff had done a similar thing. This is exactly what happened during the launch of BCH. They are a shady exchange and there are far better alternatives out there.

Informed,I am not aware of this current moves made by Coinbase but since then coinbase has undoubtedly interested only with their profits. If that is the case then it is not surprising anymore that they will start to make shadu moves for their benefits

o_e_l_e_o

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Quote from: franky1 on December 10, 2018, 05:57:14 PM

coinbase is just another subsidiary arm of DCG.co. who seem more interested in the capitalist greed than the bitcoin/blockchain purist mindset.

It is true to say that Coinbase are far more interested in pure profit than they are in being blockchain or bitcoin purists, promoters, or users, but they are not a subsidiary arm of DCG. Digital Currency Group provided early funding to many crypto based projects, including Coinbase, Kraken, Ripple and BitPay, but these projects are not wholly or in part owned by DCG and therefore are not subsidiaries. Having said that, it is very suspicious that Barry Silbert (owner of DCG) is a big promoter of MANA, and apparently bought a ton more over the last few weeks prior to the Coinbase announcing they will start trading it. I wouldn't be surprised if most of the Coinbase staff had done a similar thing. This is exactly what happened during the launch of BCH. They are a shady exchange and there are far better alternatives out there.

figmentofmyass

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Quote from: franky1 on December 10, 2018, 05:57:14 PM

if they concentrated their efforts more on OTC/merchant gateway and used less money on the custodial/regulatory costs. and more on promoting their business to merchants that want them. they would have stood better.

they pretty much bowed out of the payment processing sector. they make merchants hold their own private keys now, so their merchant services are pretty unattractive. i assume they've done this because the payment processing business isn't profitable enough.

regarding the comment about OTC trading, i agree. that's probably why they've just launched an OTC trading desk.

more than anything, i think they just rightly see how profitable altcoin exchanges have been during bull markets. they're preparing for the next one.

pooya87

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Quote from: KingZee on December 10, 2018, 08:15:41 AM

it seems like coinbase is starting to believe in the potential of a lot more coins,

in case you have missed it, Coinbase is earning a lot of money through their exchange services. as an exchange they earn money from traders. and a large portion of the daily trading volume in this market comes from pump and dump altcoins. an exchange having a couple of pump and dump altcoins will earn a lot of money from pumpers. and that is why they are adding more.

it has nothing to do with believing in anything. it is a business and they saw the "trading volume" and that is all they cared about.

franky1

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coinbase went for the wrong business model.

going for the custodial exchange model meant alot of labour, security, auditing, regulation. which means they had to diversify to survive.

if they concentrated their efforts more on OTC/merchant gateway and used less money on the custodial/regulatory costs. and more on promoting their business to merchants that want them. they would have stood better.

the 'customer acquisition' cost to get people to use coinbase, where some people only make a couple trades a year. whereby fee's of not even 1% of the trade. would have lost them alot.

they should have aimed it at the merchants/day traders and done it as a daily payout financial service to avoid the "custodial fiasco" they put themselves into

but with all that said.
im not surprised. coinbase is just another subsidiary arm of DCG.co. who seem more interested in the capitalist greed than the bitcoin/blockchain purist mindset.

darklus123

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Quote from: KingZee on December 10, 2018, 08:15:41 AM

Just thought it was pretty funny, their title reads : Coinbase abandons its cautious approach with plan to list up to 30 new cryptocurrencies

But the url says something else Grin

It's still some serious news nevertheless, because it seems like coinbase is starting to believe in the potential of a lot more coins, their potential list includes coins like : EOS (EOS), Augur (REP), Storj (STORJ), Stellar (XLM), XRP (XRP)... with these names only making a small amount of the list, I don't stand against the TechCrunch journalist calling the rest shitcoins.

I still think this is good for the future, decentralization and smart contracts have come with a lot of innovation, it would be a shame to miss out on some of them, so I guess Coinbase decided to change their stance towards them. But it's still questionable that they didn't choose to pick a few more well known coins like DASH, NANO, so I wonder how this decision is going to age in the upcoming months.

Its just that coinbase chooses the shitcoins that they liked and nano nor dash is not a part of it. Dash is been in the industry for a quite sometime already but still it is in the bottom. Nano is overrated in my opinion maybe coinbade also saw that one.

What ever coinbase might want to do with their business that might not meets our expectations. Coinbase were doing dome crazy stuffs quite awhile already so this is not so surprising

o_e_l_e_o

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Just a few months ago Coinbase said they would add some new coins based upon their Digital Asset Framework.

Now, I don't know anything about a lot of the coins listed in the article because I'm not really in to shitcoins, but there are some blatantly obvious contradictions in there - XRP and EOS aren't decentralized for a start, which goes against their very first point. I would bet that most, if not all, of these coins would be excluded for one reason or another.

Having said that, I am not surprised Coinbase are jumping in to the alt game. Go to https://coinmarketcap.com/exchanges/volume/24-hour/ and look at all the top exchanges. They all list loads of coins, and a significant amount of their volume (and therefore their profits) comes from alts. Coinbase have always been solely about profits - insider trading scandals, absolutely extortionate fees for all the newbies who didn't know about GDAX/Pro, awful customer support, accounts being locked indefinitely, etc. It is not really surprising they now appear to abandoning their own standards to list a bunch of shitcoins. I haven't used Coinbase in a long time, I don't plan to ever again.

bkbirge

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Wake me up when they list HODLcoin, lol. They've gotta figure out a way to earn in this market and if they need to churn on volume instead of their undoubtedly vast coin holdings then they gotta do what they gotta do. It seems a shame to tarnish their reputation of only picking stable coins for the exchange though, but not like I was looking at just what's listed on coinbase as my only metric to determine safe investments.

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Quote from: gentlemand on December 10, 2018, 01:56:15 PM

Quote from: LeGaulois on December 10, 2018, 01:51:43 PM

but I remember back in the years when Coinbase was considered as a Bitcoin purist, now it's a profits purist (or a capitalist if you prefer).

It was only a purist because that's where the only significant money was to be made back in the day. I'm not sure if I'd class them as an enemy of Bitcoin, but they're certainly no friend of it. They've supported plenty of cockamie attempts to fuck it up over the years. I think by this point they would probably prefer it to go away for good so they can concentrate on things they can control.

Bold to claim that they can control even one altcoin on the market. It's crazy to see that not even one altcoin ever managed to hold itself against bitcoin, everytime bitcoin takes a dump, every altcoin follows. I'm sure coinbase only care about filling their pockets but it's not as easy as just adopting a bunch of alts and calling it a day..

gentlemand

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Quote from: LeGaulois on December 10, 2018, 01:51:43 PM

but I remember back in the years when Coinbase was considered as a Bitcoin purist, now it's a profits purist (or a capitalist if you prefer).

It was only a purist because that's where the only significant money was to be made back in the day. I'm not sure if I'd class them as an enemy of Bitcoin, but they're certainly no friend of it. They've supported plenty of cockamie attempts to fuck it up over the years. I think by this point they would probably prefer it to go away for good so they can concentrate on things they can control.

LeGaulois

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Coinbase didn(t have the choice to add more altcoins to keep up with the income it currently makes. It couldn't stop to just BTC initially otherwise it would miss a lot of income. It's all about money, but I remember back in the years when Coinbase was considered as a Bitcoin purist, now it's a profits purist (or a capitalist if you prefer).

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Quote from: gentlemand on December 10, 2018, 08:57:42 AM

Quote from: KingZee on December 10, 2018, 08:15:41 AM

it seems like coinbase is starting to believe in the potential of a lot more coins,

They believe in the fees they'll earn. That's about it. But the same applies for the people buying and selling them. It's not as if anyone's gonads are aching for decentralised storage or a drain cleaning ICO.

If I were them I would at least fence them off into a separate operation. Every single coin carries a risk of it blowing up in their faces. There could be forks, double spends, 51% attacks or flat out abandonment.

This seems a tad premature to me. Still, there's bills to pay.

This is actually pretty big news for the altcoin world since Coinbase is by the far the biggest operation in the US for onboarding retail investors. If they spin off a new operation, they can't easily leverage that brand.

I suppose it's better to work out the kinks now than than to launch dozens of coins during the next bubble. Coinbase had multiple fiascos last year -- the BCH manipulation, the ETH flash crashes, constant network outages. If they launch these markets sooner than later, they can get a better handle on market liquidity and infrastructure needs.

Topic: TechCrunch throws shade at Coinbase (Read 452 times)