Coinbase has not been having a very good week in terms of public relations. What began as excitement following the addition of XRP to the Coinbase Pro platform has turned into antagonism thanks to its partnership with Neutrino. Further developments covered by Coin Rivet show that Coinbase’s partners previously sold their customers’ data. This led to the #DeleteCoinbase movement on Twitter over the weekend.
The aim is clear: to get as many customers to delete their Coinbase accounts as possible to hit the company where it hurts – namely its pockets. The movement would need to gain quite a lot of traction to provide any fears for a company of Coinbase’s size.
The reaction from many Bitcoin maximalists has been predictably enthusiastic. There have been some questions raised as to the wiseness of the idea though. Coinbase is one of the main onboarders for traditional retail investors to buy their first Bitcoin. Its easy-to-use site and first mover advantage mean that Coinbase has become one of the biggest exchanges in the world. Many of its customers might not be the people who are generally bothered by the Neutrino partnership or the selling of customer data.
In essence, some people believe that the movement could adversely affect the price of Bitcoin in a form of cutting off your nose to spite your face.
Kraken founder Jesse Powell pointed out that his company’s analysis of the different blockchain analytics tools placed Neutrino at the bottom. It was eventually disqualified anyway due to the risks associated with it. Such an admission shows that fears regarding Neutrino are not to be sniffed at.
Whilst Coinbase might be taking a small hit right now, it is likely to recover strongly. The industry moves quickly enough that a new bug bear will occur at some point this week for people to grab their pitchforks.
However, Coinbase’s standing has long been subject to questioning from many who have seen the industry evolve. Instead of encouraging new users to sign up with Coinbase, people are finally looking for an alternative.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.