All Platforms: https://linktr.ee/ljcrypto1118
Coinbase And Binance:
Probably known as the two most popular exchanges: Coinbase and Binance, they have a lot of users and have been able to profit a lot from trading volume. Binance has in the past month been undergoing changes due to regulatory compliance, which has included not being partnered with banks in countries around the world, and requiring KYC if cashing out a certain amount of money. However, there is a new problem that has emerged with this exchange, along with Coinbase.
Let's Start With Binance:
On May 19th of this year, thousands of traders traded on Binance, but the exchange had a website outage and traders still had their money traded in the markets. Because of this, these traders have gotten liquidated substantially.
Binance was dealing with technical issues and this is the day where the market was experiencing a really bad crash. The price of coins dropped by 33%.
Binances terms inform new users of the platform that any losses that users have are at their own responsibility and should not be held by the exchange. Binance has no regulation whatsoever on these types of matters.
David Kay of Liti Capital feels that Binance tries to protect itself through the term decentralization, stating that it has no headquarters and can’t be regulated. However, Binance is still facing a lot of regulatory pressure, so this statement has altered a lot.
For the traders who got heavily liquidated the day Binance shutdown, Binance has agreed to hear testimonies in the Hong Kong International Arbitration Centre. The only potential problem of this though is how expensive it is to initiate a testimony or claim, which is a 65K fee. Testimonies can only be made individually.
Now Let’s Go Into Coinbase:
Coinbase for a long time has been horrible in terms of customer service and it’s starting to become a thing where it can’t be ignored this year. Not to mention, Coinbase is notorious for its pricey fees when it comes to buying and selling crypto on their platform. Customer service has been attempted in regards to account locking, hacks, and loss of funds. Customers have lost hundreds of thousands of dollars in crypto. A crypto analyst, Kaleo, has sparked a lot of attention about this with a tweet saying that his own dad was unable to get access to his Coinbase account. Since 2016, there have been over 11,000 filed complaints over the customer service of Coinbase.
But that’s not all:
Recently, Coinbase, by mistake, sent an email to over 125K users announcing that their 2FA settings were changed. Of course, this can be alarming since this can affect the security of your account and can be misinterpreted as a hacker potentially getting control over your funds. Coinbase sent out a tweet about this matter and has said, “We will continue to gain back the trust of everyone of our customers who was impacted by those notifications.”
These tweets show that customers think very poorly of Coinbase’s customer service. Because of how much attention this has been getting, hopefully the company will finally put more attention towards resolving this issue.