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Tag: Coinbase

  • Coinbase tangled in a class action lawsuit

    Coinbase tangled in a class action lawsuit

    Coinbase is one of the top cryptocurrency exchanges. The exchange recently went public – the first of its kind to do so – which gives it an unparalleled repute in the crypto space. However, the bull run of 2021 brought heavy criticism on Coinbase and other leading crypto exchanges. The bull run saw staggeringly high traffic which caused various blackouts in the exchange. Coinbase was criticized more heavily because of the leading position it enjoys it’s the market. The blackouts also brought under light users who have had their accounts suspended for prolonged periods of time without any apparent reason.

    Six cryptocurrency owners have taken upon their selves to hold the leading crypto exchange responsible. The six crypto owners have filed a class-action lawsuit against Coinbase with the claim that Coinbase had wrongfully suspended their accounts for several months. The crypto owners are seeking $5 million in compensation for themselves. The class action is also open to more plaintiffs and anyone who has been suffering from the same issue is open to join.

    The complaint was filed on Friday to the San Fransico federal court by Joseph Treseder. Treseder claims that he deposited $30,000 in his account at Coinbase to purchase XRP; however, he received an error citing invalid login details. The complaint alleges that due to being locked out of their accounts, the crypto owners suffered losses at time – due to being unable to trade.

    Coinbase’s spokesperson had said the company is looking into the matter. Whether the lawsuit hold or not in court is another matter altogether but for the time being Coinbase’s reputation has taken a hit. The compliant has also highlighted the incompetency of the customer services department which has been the cause of many users’ woes.

  • Dogecoin (DOGE) not a joke – Coinbase Pro listing

    Dogecoin (DOGE) not a joke – Coinbase Pro listing

    In a hallmark move for the cryptocurrency, Dogecoin (DOGE) is being added by Coinbase Pro – a listing not that easy. Coinbase is considered the most selective crypto exchanges with just 63 tokens listed. Being the only cryptocurrency exchange-listed, Coinbase also enjoys a much superior reputation which will prove to be beneficial for Dogecoin.

    Dogecoin (DOGE) started off as a joke but the cryptocurrency does not appear to be a joke anymore. Invented in 2013 by two engineers literally as a joke and based on the dog, Shiba Inu, the founders certainly would not have fathomed the popularity that dogecoin has today. It all started with Elon Musk, billionaire CEO of Tesla. Musk took it upon himself to advocate cryptocurrency and the possibility of its mass-scale adoption as a mode of payment.

    Elon Musk’s efforts earned him his title of “Doge Father”. The CEO has sent the cryptocurrency shooting upwards with his tweets and comments on social media. Dogecoin showed phenomenal performance in the bull run of 2021 – increasing from $0.004 to $0.73. however, the market crash sobered up the Doge community as well as the cryptocurrency fell and fear overtook the market.

    But this is not the end of dogecoin. In fact, it may as well be just the beginning for cryptocurrency. Elon Musk observed a shift towards the development of cryptocurrency. The Tesla CEO is now working with the developers of Dogecoin to turn his belief into reality – Dogecoin as an accepted mode of payment.

    The success of Dogecoin has led it to create a whole new segment of cryptocurrencies – meme coins. Cryptocurrency like Shiba Inu (SHIB) and Akita Inu (AKITA) have followed the footsteps of Dogecoin.

  • Cryptocurrency exchanges not ready for the market?

    Cryptocurrency exchanges not ready for the market?

    The cryptocurrency market had crashed amidst environmental concerns. The market crash has bought a lot of Hodlers as well as panic sellers. The market capitalization of cryptocurrencies fell from above $2 trillion to $1.78 trillion. The past week had seen unparallel volatility with the market flooded by buyers and sellers.

    Binance, the world’s largest crypto exchange, had temporarily suspended Ethereum (ETH) withdrawals from the exchange as the orders kept piling up. Coinbase, another major crypto exchange, had also been suffering from downtimes. Binance had also been cited to freeze users’ accounts for prolonged periods of time and without citing any solid reason.

    Two of the major cryptocurrency exchanges have not been able to handle the large traffic in the crypto market – with others struggling as well. Both exchanges have commented on working towards resolving the issues but is the market not ready for cryptocurrency adoption yet?

    Bitcoin’s Proof of Work (PoW) mechanism had been under a lot of debate. Various researches have pointed out towards the exorbitantly high energy consumption of cryptocurrencies operating with the PoW staking mechanism. However, it was not until Elon Musk that the cryptocurrency sphere took the matter seriously.

    Elon Musk’s Tesla had earlier announced to accept Bitcoin as a mode of payment but the billionaire CEO announced that Tesla is ceasing the acceptance of Bitcoin as a payment method. The announcement caused an uproar in the market which led to a brutal market crash. At the time of writing, the king of cryptocurrencies is down by nearly 20% in the weekly window. As the market shows some reversal, whether or not the leading exchanges are ready for the behemoth cryptocurrency industry is set to become is under debate.

  • Tether Listing on Coinbase Despite Controversy

    Tether Listing on Coinbase Despite Controversy

    The largest cryptocurrency exchange, Coinbase, has announced to list Tether (USDT) on its professional trading platform. Coinbase Pro will allow deposits in USDT if liquidity conditions are met before April 26 – the trading launch. After the supply limit of Tether is fulfilled, trade in BTC-USDT, ETH-USDT, USDT-EUD, USDT-GBP, USDT-USDT, and USDT-USDC will be enabled in post-only, limit-only and full trading subsequently.

    However, Coinbase only supports ERC-20 Tether based on the Ethereum blockchain. The launch of USDT on Coinbase Pro does not entail that the stablecoin is supported by the mobile application or the retail trading platform and the exchange has reported to make a separate announcement if it were to happen.

    Tether is a stablecoin backed by USD which means that every Tether token is backed by US dollars in Tether’s bank accounts. Tether is pegged 1 to 1 to USD. However, the company’s claims that each Tether is backed by equal US dollars in the company’s reserves turned out to be false. Tether Limited has since found itself tangled in controversies. In the announcement, Coinbasealso hinted that the NASDAQ-listed exchange is not worried about the controversy surrounding Tether.

    Recently, New York Authorities had alleged that Tether is not, in fact, backed by the US dollars as the company claims. The lawsuit by the attorney general of New York shook Tether Holdings Limited to its core. However, the lawsuit could not proceed as a settlement was reached between the parties. Bitfinex and Tether were required to pay a fine of $18.5 million and submit reports of their reserves. The stablecoin has been complying with the requirements and the company’s consolidated reserves report shows USDT is fully backed by USD.

  • Bitcoin Funding Rate Crashed to -0.03% Amidst Panic in the Market

    Bitcoin Funding Rate Crashed to -0.03% Amidst Panic in the Market

    Bitcoin funding rate crashed to a record low not seen since September 2020. The sudden drop in the funding rate indicates fear in the market. The market has been largely bullish since the beginning of the new year but market corrections are imminent. With Bitcoin operating at a whopping level of above $50,000, the market retracement is expected to be as harsh.

    The Bitcoin futures contracts’ funding rate has fallen to a low of -0.03%. The crash of the funding rate comes as the cryptocurrency violently fell by a high of $64,000 to around $50,000. The bullish market sentiment transformed into bearish in a spur of a moment.

    Bitcoin surged upwards to a new all-time high during the Coinbase listing in anticipation of what the NASDAQ listing would mean for the cryptocurrency sphere. At the same time, the funding rate also remained stable. But as the king of the market fell downwards – which some people account to the power outage in China – the funding rate followed.

    The funding rate uses the simple demand and supply mechanism of the market to reach equilibrium. If there are more long positions in the market then short ones, the funding rate will go up and vice versa. The crash of the funding rate represents more short positions as sellers dominate the market.

  • Coinbase (COIN): To Go Up or Crash?

    Coinbase (COIN): To Go Up or Crash?

    One of the most sought-after listing – if not the most – occurred yesterday and as the market have settled there are mixed views about the future of Coinbase. Coinbase’s listing is indicative of widespread cryptocurrency acceptance. The crypto market surged upward with Bitcoin establishing a new all-time high with the direct listing of Coinbase.

    Coinbase got a reference price of $250 from NASDAQ but the opening price was much higher – at $380 – giving it a valuation of around $100 billion. In the initial hours of trading, the price of the ticker COIN shot up to $420. However, COIN could not sustain the high price and quickly fell to as low as $310. At the time of publication, COIN stands at a price of $328.

    On Bitfinex and FTX the pre-IPO tokenized price of COIN was at $610, which has fallen, too, to $410. It appears as though the enthusiasm for Coinbase’s COIN has died down. While some investors have grown less and less bullish on COIN, others continue to vie for it.

    MoffettNathanson analyst Lisa Ellis has regarded COIN as one of the must-have stocks. The cryptocurrency market is going to propel COIN upwards and COIN is going to push cryptocurrencies up – creating a positive feedback loop. Per the analyst, the stock is poised to reach $600 in the coming days.

  • The Crypto Market’s Top Headlines of the Week

    The Crypto Market’s Top Headlines of the Week

    The cryptocurrency market has been on a roll and bullish momentum appears to only be further escalated. Here are the top developments in the crypto sphere that took place in the past week:

    • Bitcoin (BTC) finally crossed the strong resistance level of $60,000 and has stabilized in the region while Ethereum (ETH) established another all-time high at $2,199
    • The cryptocurrency market surpassed a market capitalization of $2 trillion – a testament to the mammoth of a market it is destined to become
    • Kraken, the fourth-largest cryptocurrency exchange has hinted towards going public in 2022 following Coinbase’s NASDAQ listing on the 14th of April
    • The second oldest bank in the US, State Street, has entered the crypto market with its forex exchange, Currenex, providing infrastructure to a crypto trading platform
    • Caruso properties, one of the largest privately-held real estate firms, has incorporated payment of rent in cryptocurrencies
    • Celebrities like Paris Hilton and Lindsay Lohan has becoming increasingly interest in the NFT market as it takes off while Gucci and Playboy has also announced their debut in the field
    • In the Ripple lawsuit, odds are tipping in the favor of Ripple Labs as the firm was granted access to the discovery documents of BTC and ETH while the SEC was denied access to the financial statements of Ripple Labs’ executives – all the while XRP skirts close of $1.50

    In the global sphere,

    • Asian market’s love-hate relationship with cryptocurrencies continues. After the alarm bells ringing in Thailand and Korea, they have reached Sri Lanka. The Sri Lankan Central Bank has warned the population about the risks of investing in cryptocurrencies.
    • Vietnamese miners are panicking and selling off mining equipment in large quantities as a market crash is imminent.
    • The Chinese government has launched a digital Yuan – e-Renminbi. The digital currency, if successful, may have the potential to overthrow the king of the market – Bitcoin.
    • A Romanian public university, Lucian Blaga University of Sibiu, has announced to start accepting tuition payments in Elrond cryptocurrency in order to support the local project
  • Exodus Wallet Regulated Offering Record Share Sale

    Exodus Wallet Regulated Offering Record Share Sale

    Exodus a multi-currency wallet that supports over a hundred cryptocurrencies set a record share sale in a regulated public offering. The Delaware-based firm, Exodus Movement, commenced the share sale on April 8 after the approval of the United States Securities and Exchange Commission.

    In just five days, the firm has been able to raise around $59 million. The share is being offered at $27.42 and the offering will last until the goal of $75 million is reached. The crypto wallet had been able to complete around 80% of its fundraising goal from over 4,000 investors.

    The Regulation A sale enabled Exodus to reach far beyond accredited investors. The firm reported a majority of the investment has come from retail and non-accredited investors while accredited investors only accounted for 8% of the total investment. The offering was only available to investors in Texas, Arizona and Florida. The wallet accepted investment in Bitcoin, Ethereum and USDC instead of fiat currency.

    With Coinbase’s NASDAQ listing scheduled for later today, it is expected to shatter Exodus Wallet’s share sale record. Coinbase’s direct listing is expected to be the largest crypto offering in history but with the reference price set below expectations, things may not go as hoped.

  • Coinbase’s reference price of $250 lower than expectations

    Coinbase’s reference price of $250 lower than expectations

    The leading cryptocurrency exchange Coinbase is all set to be listed on NASDAQ. The cryptocurrency world is holding its breath for Coinbase’s direct listing. Coinbase is the first significant direct listing on NASDAQ.

    Coinbase’s ticker COIN received a reference price of just $250 which is much lower than the expectation. However, the direct listing means the reference price is not an indicator of Coinbase’s market capitalization. The reference price of $250 signifies a valuation of $65 billion whereas estimates range anywhere from $68 billion to $120 billion.

    The NASDAQ announcement was quick to point out that the reference price does not indicate the offering price and that no trade has taken place at the price of $250. The reference price had been decided with the consultation of Coinbase and while keeping its transaction history. The opening price will be determined by the sell and buy orders in the auction.

    Coinbase has also surprised its full-time employees with 100 shares each. The current reference price makes it $25,000 per employee of the 1,700 workforce of Coinbase. This was a “thank you” gesture from Coinbase and employees can sell their shares immediately after Coinbase goes public.

    The Coinbase NASDAQ listing is one of the most anticipated events and other major crypto exchanges are set to follow if the listing and opening price surpass expectations. Kraken, a Coinbase competitor, has already hinted towards their stock exchange listing as well which may happen in 2022.