News

Coinbase Suffers Backlash Based on Recent Acquisition

0 Comments

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”.

eToro
Key Features
Award-winning Cryptocurrency trading platform
11 payment methods, including PayPal
FCA & Cysec regulated
Min Deposit
£160
United Kingdom
Key Features
Award-winning Cryptocurrency trading platform
11 payment methods, including PayPal
FCA & Cysec regulated
Payment Methods
Credit Card, Debit Card, Wire Transfer, PayPal, Skrill, NETELLER, Yandex, WebMoney, UnionPay, Western Union, MoneyGram
eToro is a social trading platform based in Cyprus. The company has revolutionised the online trading industry by introducing innovative ways for traders to capitalise from the financial markets.
eToro is a multi-asset platform which offers CFD and non CFD products. 75% 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.
City Index
Key Features
Fixed spreads from 35 on BTC
Multi-exchange reliable pricing
Awarded Best Spread Betting Provider 2019 by OPWA
Min Deposit
£170
United Kingdom
Key Features
Fixed spreads from 35 on BTC
Multi-exchange reliable pricing
Awarded Best Spread Betting Provider 2019 by OPWA
Payment Methods
Wire Transfer, PayPal, Credit Card, Debit Card, Bank Transfer
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
24option
Key Features
Leader in Crypto CFDs
Cryptocurrency Education Centre
Easy to use Trading Platform
Min Deposit
£200
United Kingdom
Key Features
Leader in Crypto CFDs
Cryptocurrency Education Centre
Easy to use Trading Platform
Payment Methods
Credit Card, Debit Card, Skrill
24Option is an online CFD broker providing an intuitive trading platform designed with the latest technological advancements that are geared towards new traders as well as professionals.
Alvexo
Key Features
Daily Signals -Demo Account -Complete Education
Easy to use Mobile app
24/7 available Customer Care department
Min Deposit
£200
United Kingdom
Key Features
Daily Signals -Demo Account -Complete Education
Easy to use Mobile app
24/7 available Customer Care department
Payment Methods
Visa, Mastercard, Wire Transfer
Clients can start live trading with a minimum of $200 deposited in their trading account, which is considerably more than many other brokers require. Alvexo keeps client funds in segregated account in accordance with the CySEC Investors Compensation Fund. If segregation fails, then your trading account balance is covered in an amount up to €20,000 per person, per firm by the EU’s Investors Compensation Fund. Platforms Alvexo offers its clients trading services via three types of trading platforms: Web-based trading platform – the broker’s WebTrader platform does not require a download and can be accessed from any computer with an Internet connection. MetaTrader 4 – the world’s most powerful and popular forex trading platform, which offers a high level of programmability and automation The software also has the capacity for multiple order execution types, automated trading, custom indicators, chart-based trading, position keeping, and trading alerts and signals.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Investous
Key Features
Daily market updates and news
Daily market analysis and historical data
Online webinars
Min Deposit
£250
United Kingdom
Key Features
Daily market updates and news
Daily market analysis and historical data
Online webinars
Payment Methods
Credit Card, Skrill, Wire Transfer
Investous even new platform has already established a solid reputation as a portal that's built around the evolving needs of its members. It provides a smooth simple and streamlined interface that supports intelligent and intuitive trading, with a wide range of popular assets, superb educational tools and responsive customer service.
79.86% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Plus500
Key Features
Crypto Trading - Available 24/7 *
No need to open a crypto exchange account or use a special wallet
Fully regulated - FCA, ASIC, CySec
Min Deposit
£40
United Kingdom
Key Features
Crypto Trading - Available 24/7 *
No need to open a crypto exchange account or use a special wallet
Fully regulated - FCA, ASIC, CySec
Payment Methods
Credit Card, PayPal, Skrill, Bank Transfer
Plus500 is a leading provider of Contracts for Difference (CFDs), delivering Leveraged trading on +2,700 financial instruments, including Forex, Commodities, Indices, Shares, Options and Cryptocurrencies.
80.6% 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.’ * Except for 1 hour on Sunday.
Thinkmarkets
Key Features
FCA and ASIC regulated
$250 minimum deposit
Trade Crypto, Forex and CFDs
Min Deposit
£250
United Kingdom
Key Features
FCA and ASIC regulated
$250 minimum deposit
Trade Crypto, Forex and CFDs
Payment Methods
Bank Transfer, Credit Card, Debit Card, Skrill, NETELLER
Headquartered in the UK and Australia, ThinkMarkets (formerly ThinkForex) is a global brokerage specialising in foreign exchange (‘FX’), metals and global CFD trading, as well as spread betting. Dedicated to delivering high quality execution and service to an ever growing range of traders, ThinkMarkets is established as an industry leader in identifying and developing new trading technologies, having been named “Best Broker Australasia” by the World Finance Awards, “Best New Contributor” by FXStreet and “Best Forex Broker in Asia” at the China Forex Expo. The firm recently launched its proprietary in-house trading platform ThinkTrader, which gives the users the ability to trade on a multi-assets platform with greater functionality and execution. ThinkMarkets are focused on helping their users, and run a number of educational and support initiatives. As well as providing 24/5 customer support, ThinkMarkets also provide a full suite of tutorial seminars, webinars and videos as part of their cornerstone ThinkMarkets University. ThinkMarkets is a trading name of TF Global Markets (UK) Ltd, fully authorised and regulated by the Financial Conduct Authority (FCA) with licence number 629628 in the UK and the Australian Securities and Investments Commission (ASIC) with AFSL number 424700 in Australia.
74.39% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.