Coinbase Archives - 2100NEWS

UrbanMarch 1, 2019

34min674

It seems that, following a number of unfortunate events, major crypto company Coinbase might be getting into a major crisis.

Currently, the hashtag #DeleteCoinbase is becoming more popular by the minute, ranging from users showing proof that they’ve deleted their Coinbase account, over warning against staying there, to one instance of people even paying others for closing their accounts. All of this for a simple reason: the community believes that Coinbase has lost their moral compass after their acquisition of a startup called Neutrino. It was founded by three former employees of Hacking Team, a controversial Italian surveillance vendor that was caught several times selling spyware to governments with dubious human rights records, such as Ethiopia, Saudi Arabia, and Sudan.

“It saddens me to see what they’ve done to their platform. Count me out,” writes Twitter user @21isenough. This is a sentiment echoed by many in Crypto Twitter. User @lartdetre writes, “Closing Coinbase account help avoid tons of headaches. They went so over the top that it’s totally insecure to stay there now.”

“Call me crazy but I commend this community for the whole #DeleteCoinbase movement. I’m interested to see how & if Coinbase will listen to its users & the users they have lost. I won’t hold my breath though,” commented user @ashrugg.

Until now, the company has only responded that “Coinbase does not condone nor will it defend the actions of Hacking Team,” but “it was important for Coinbase to bring this function in-house to fully control and protect our customers’ data and Neutrino’s technology was the best we encountered in the space to achieve this goal.”

It’s currently hard to tell how many users have left Coinbase, let alone if that makes a difference to them. The company has not responded to a request for comment. Coinbase investors, including Andreessen HorowitzUnion Square VenturesDFJ Venture Capital and others, also remain silent on the issues that the company has been facing. Cryptonews.com contacted them, as well as Intercontinental ExchangeRibbit CapitalFunders Club and others for comment, but none of them have yet replied.

As for how to handle such a growing crisis, Samantha Yap, founder and director of international PR firm with a focus on fintech, blockchain and cryptocurrency startups YAP Global, told Cryptonews.com: “When a communication crisis arises, it is essential for the company to take control of the conversation in the media rather than stay silent and enable misguided assumptions to spread.”

Moreover, there is another challenge the company faces.

“Influencers in the cryptocurrency sphere on social media platforms such as Twitter and Reddit have the power to sway public opinion about the company. As a result, the recently launched #deletecoinbase social media campaign is spreading fast with influencers like Whale Panda, who has 213,000 followers on Twitter, drawing attention to the hashtag,” Yap said.

WhalePanda@WhalePanda

Well I really couldn’t stay behind now could I? Even though I haven’t used them in quite some time…

55 people are talking about this

“However, to Coinbase’s defence, I understand why, as a large company, they would opt to issue one formal official statement for the time being, because it can’t individually address everyone’s concerns. Once you respond to one journalist or writer, you must give an interview to everyone,” she added.

“As someone who has worked with thousands of technology companies and hundreds of crypto ones, I can tell you that in any sort of communication crisis the best thing to do is take responsibility for your mistakes,” Ayelet Noff, founder and co-CEO of global PR agency Blonde 2.0, tells Cryptonews.com. “Do not try to hide them or justify them. Listen to your community and post comments where they are speaking, showing that you are listening and taking control of the conversation. In addition it is a great idea to post a blog post discussing the situation, showing that you are taking responsibility for your actions and explaining how you plan to solve the current situation.”

In the meantime, Coinbase users are continuing deleting their accounts.

Embedded video

Udi Wertheimer@udiWertheimer

is real

42 people are talking about this

One person, under the Twitter handle @JpintoPedro, is further incentivizing the movement: “Everyone deleting their #Coinbase account and making proof of it will receive 1000 [satoshis]. respond to this post with the proof of deletion and rejoice sending an invoice for 1000 sats!” The person is using tippin.me, a Twitter crypto tipping app that uses Lightning Network to send small transactions between users.

CEO of competing cryptocurrency exchange Kraken, Jesse Powell, commented on the case on his own Twitter account: “Personally, I support any company which has the guts to roll out a transitional workforce development program. If you’re giving an honest paycheck and a second chance to a guy who used to have to sell out journalists to fascist governments to make ends meet, you’re ok by me.” Other users have had to drop in to explain that he is being sarcastic, due to immediate outlash from some.

However, the Coinbase team seems to be making the issue even more difficult, as multiple users complain they cannot close their accounts. Apparently, after completing everything the exchange needs them to, they simply receive a message that says, “You cannot complete the account closure quite yet.” User @won13three had contacted the company: “Same thing. I called customer support and they have an ‘account specialist’ on the case now.”

Embedded video

Adam Moore@AdamPaulMoore

Why isn’t @Coinbase allowing me to delete my account? Send help! @udiWertheimer

39 people are talking about this

One reason for this might be so-called “dust”: tiny amounts of cryptocurrency are reportedly preventing some users from leaving Coinbase, because they were too small to transfer out, but the exchange supposedly doesn’t allow the closing of accounts with remaining balances, news outlet BreakerMag reports.

Developer and Bitcoin enthusiast Udi Wertheimer developed a solution to that, called the #DeleteCoinbaseTrustChain: because Coinbase allows free transfers between existing accounts, users could simply transfer their “dust” to another Coinbase user, then close their account.

Udi Wertheimer@udiWertheimer

Coinbase won’t let people close accounts with dust balances????‍♂️

Let’s fix it:
1. Tweet your dust balance with
2. Someone replies with their coinbase email address (or DM)
3. Send your dust and close your account
4. They do the same
5. Repeat

Who’s first?

No Mo FoMo@FomoRektMe
Replying to @udiWertheimer and 5 others

Tried to close my account but I have small amounts of coins left in that are too small to transfer and they won’t allow account to close without transferring?

View image on Twitter
110 people are talking about this

Perhaps expectedly, part of the crypto community has taken this as the perfect chance to make memes out of the situation.

bitcoiner@AnselLindner

Don’t underestimate the crew.

These are many of the same people that brought us Segwit with the UASF and forced Bitmain to get rekt.

See CryptoScamCentral’s other Tweets

UrbanJanuary 28, 2019

4min546

Filing taxes can definitely be confusing, especially if you add cryptocurrencies to the equation, where almost nobody seems to understand how you’re supposed to file those. That’s why cryptocurrency company Coinbase integrated TurboTax, the tax-filing software offered by software company Intuit Consumer Tax Group. However, it’s not a silver bullet and you still might need help from a tax professional.

TurboTax Premier will reportedly let Coinbase and Coinbase Pro users upload their transactions, gains and losses in 2018 – up to a 100 transactions at once – and the software will then help customers determine how to file their taxes from the last year. In case you need additional help, you can ask for certified public accountants or enrolled agents at Intuit.

However, the press release from Intuit warns users, “One thing to keep in mind, not every cryptocurrency transaction constitutes a taxable event, which is why we have tons of guidance to assist you in understanding and selecting which transactions are taxable while you are in TurboTax Premier.”

The list of transactions that are not taxable include customers who bought cryptocurrencies and have not yet sold, gifted cryptocurrencies (with each gift valuing less than USD 15,000 per recipient) or purchased cryptocurrencies with a Self-Directed Individual Retirement Account (IRA) or Solo 401(k), a retirement plan for Americans that was designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s).

Those who do have to pay taxes on their crypto are customers who converted their coins to fiat, sold cryptocurrencies, spent it to pay for goods or services, or received free coins through a fork or airdrop.

Coinbase is also launching a tax resource center and publishing a “Crypto and Bitcoin Taxes in the US” guide for 2018 to help its customers understand any tax obligations they may have. However, they add that they are not authorized to give tax advice and urge their users to seek help with tax professionals in specific situations.

Coinbase will additionally integrate CoinTracker, a crypto and bitcoin tax software manager built by former Google employees. In their own release, CoinTracker said that they will help customers aggregate necessary transaction data across “all wallets and exchanges” that they may use, effectively summarizing all transaction activity for 2018.

CoinTracker co-founder Chandan Lodha said in a statement, “We can’t have an open financial system if it is too difficult to use, or restricted to certain groups. Therefore, we have a simple mission: make cryptocurrency easier to use. We are starting by tackling cryptocurrency taxes.”

As reported, in case you have encountered losses while trading cryptocurrencies last year in the US, you can claim a deduction.


UrbanDecember 14, 2018

5min523

Major United States-based crypto exchange Coinbase is “exploring” the possibility of providing trading support for over 30 cryptocurrencies. Potential new additions include Ripple (XRP), EOS and Cardano (ADA), according to a press release published Friday, Dec. 7.

The company has revealed a list of 31 cryptocurrencies, including the aforementioned three, as well as NEO, Tezos (XTZ), and others. Coinbase states that it “will be working with local banks and regulators to add them in as many jurisdictions as possible.”

List of cryptocurrencies Coinbase is considering to add

List of cryptocurrencies Coinbase is considering to add. Source: blog.coinbase.com

Coinbase added that a cryptocurrency being present in the list is not a guarantee that it will ultimately be added, as any coins could face some restrictions or might not be listed at all, after their evaluation is finished:

“Adding new assets requires significant exploratory work from both a technical and compliance standpoint, and we cannot guarantee that all the assets we are evaluating will ultimately be listed for trading. Furthermore, our listing process may result in some of these assets being listed solely for customers to buy and sell, without the ability to send or receive using a local wallet.”

Back in September, Coinbase announced a new listing process that would allow it to add digital assets faster than before. However, the crypto exchange has pointed out that the new procedure only applied to digital assets that were compliant with their local regulations. Thus, certain assets listed by Coinbase might only be available to customers in particular jurisdictions.

In November, the U.S.-based crypto exchange added Ethereum Classic (ETC) and later Zcash (ZEC) trading to its platform.


UrbanDecember 6, 2018

4min255

Following the launch of Zcash (ZEC) on Coinbase Pro last week, Coinbase has announced support for the cryptocurrency on Coinbase.com and on the crypto exchange’s Android and iOS apps, enabling users to buy, sell, send, receive, or store ZEC throughout the company’s platforms and services.

Zcash Now Available on Retail Brokerage Coinbase

At the moment, Zcash support is available to customers in most jurisdictions, with the exception of New York state and the United Kingdom. According to the announcement, other jurisdictions may later be added.

It will be recalled that following the price rise recorded after the initial Coinbase Pro integration last week, the cryptocurrency defied the so-called “Coinbase Effect” by falling 17 percent in a single day on November 30. Explaining how the privacy-focused capabilities of Zcash will be supported on Coinbase, the company revealed that it would offer partial support for shielded transactions until such a time as local regulations allow for full implementation of transaction shielding.

An excerpt from the Coinbase statement reads:

“In both cases, the unencrypted/transparent version of the protocol allows third parties to see metadata associated with the communication or transaction, while the encrypted/shielded version protects this information. Initially, customers can send ZEC to Coinbase from both transparent and shielded addresses, but only send off Coinbase to transparent addresses. In the future, we’ll explore support for sending ZEC to shielded addresses in locations where it complies with local laws.”

Differing Responses to Listing

Following the announcement by Coinbase on Twitter, responses have veered from positive to distinctly unimpressed. Some have speculated that the development may have implications for the continued privacy of Zcash. According to this school of thought, this core feature of the cryptocurrency which is secured using zero-knowledge cryptography, might be compromised by going live on Coinbase. This is because Coinbase is based in the United States and is thus subject to state and federal laws, including supervision by the SEC and FINRA KYC/AML requirements. The deployment of KYC for the purpose of trading ZEC, in theory, would contradict the spirit of the cryptocurrency by effectively exposing the identity of every customer who trades ZEC on Coinbase.

On his part, Zcash founder Zooko Wilcox has expressed optimism about Coinbase upholding the privacy enhancements created by Zcash in spite of the many arguments to the contrary.

Speaking recently in a tweet he said:

“As the industry matures, we believe privacy protections will be mandated by most exchanges, governments and other financial institutions, leading to the broad adoption of Zcash.”



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