I've always knew that COINBASE (both Pro and Non-Pro) is a piece of shit.
Well, it's yet another centralized crypto exchange with blackjack, hookers, KYCs, and AMLs geared mainly towards the US folks. It's yet another centralized "crypto wallet" with the same old hookers. It's a "learn and earn" shit pushed at every corner promising you up to 10 bucks (if you didn't get it -- $0.01 is also up to $10) if you manage to be picked up from the "waiting list" and to live in a "supported" country. Shortly, just another average shit for a crypto shrimp like me.
Actually, until yesterday I never gave much attention to Coinbase. But the last couple of days I saw some interesting news about it.
First, Mr. Armstrong of Coinbase warned about an article in the NYT (or something similar), which would pour some shit at Coinbase: something about fake racism incidents within the company. Well, I know about Django Unchained, 12 Years a Slave, the Black Panthers, and M.L.King. It all may well be an important topic for the US folks. But what the fuck it has to do with crypto?! And racism is not the first vogue shit Coinbase messed into. Before there was a Twitter drama about "political neutrality" or alike.
Second, as though racism thing was not enough, Mr. Armostrong tweeted about alleged new regulations: leaving Trump men were to force centralized exchanges to KYC "self-hosted wallets". That is, you can't withdraw your BTC from Coinbase into your own wallet without proving to Coinbase that the wallet is actually yours. Well, it's already perfectly clear that the government monkeys all over the world are jumping out of their pants trying to regulate cryptosphere back and forth somehow. In non-Soviet Russia they've already proposed to send hodlers in jail for not declaring their crypto holdings. Well, these "regulation" attempts is really a problem, and it's good if CEOs drive public attention to these questions. However, why Mr. Armstrong decided to tweet about it right now?
Maybe because on the 25th they shut down marginal trading at Coinbase? As far as I could understand, it was the result of those "regulation attempts" -- marginal trading at Coinbase couldn't comply with some gov shit. After the 25th Coinbase traders can't pile leveraged BTC longs anymore, and besides they must gradually unwind their existing pyramids somehow.
And a cherry on top was $90M of liquidated positions at Compound, most probably caused by an exploited Coinbase oracle:
It appears that a malicious actor may have manipulated the price of DAI on the Coinbase Pro exchange, in order to trick the blockchain—via its oracles—into thinking that the current price of DAI really had shot up. When the blockchain thought DAI had hit $1.30, it figured that many of the loans were undercollateralized and liquidated them.
I have some gut feeling that yesterday's BTC sell-off was the result of all the shit Coinbase recently produced...
From some recent articles, I see that the sell-off was "clear" and "seen" by news and charts. Well, maybe. It always becomes clear in hindsight. However, I also know some decent traders who failed to predict it on time.
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