As the saying goes, tall trees catch much wind,’ and for Coinbase, especially this week, this seems to be true. The seventh biggest exchange through transaction volume, as shown on Coinmarketcap is also the biggest exchange in the US. So, being at the top, it has caught a lot of flak and made a lot of news this week.
Coinbase is an important junction in the cryptocurrency ecosystem, and it has shown on a number of occasions that its influence and direction can shape the entire marketplace globally.
Its decision to integrate SegWit recently saw an upswing in those types of transactions, but on the flipside, its decision to offer Bitcoin Cash also pumped that market- in what is being called insider trading by some. Even rumors about Ripple integration have had its effect on the coin.
In the news this week alone, Coinbase has been sued twice, once for the insider trading allegations, and once for allegations that it “kept” funds that its users sent via email, but which recipients never claimed. It has also been linked to Ripple, again, and has had to deny that- which has caused swings in the Ripple price. Finally, it is still forging ahead as a pioneering crypto ecosystem with its latest offering an index fund.
Laying out lawsuits
Coinbase is no stranger to lawsuits and legal battles, having faced a few days in court before, as well as having fended off the IRS in their quest to obtain users’ trading information through the exchange. But fresh allegations have emerged, dating back to their decision to integrate Bitcoin Cash onto the platform.
At the end of December last year, Coinbase decided to add Bitcoin Cash to their offerings. This saw the price of the forked currency soar, while Bitcoin started to drop off.
Immediately, accusations flew that Insider trading was happening, despite the company making it clear that employees had been restricted from trading BCH on the site for a number of weeks prior to the announcement.