Top US Crypto Exchange Coinbase's Growing Might Be 'Outpacing Its Own Resources'
Business Insider cites records obtained by Mashable through a five-month Freedom of Information Act (FOIA) process, which comprise 134 pages of complaints filed by Coinbase customers using the U.S. Securities and Exchange Commission (SEC) and the California Department of Business Oversight.
Meanwhile, the Coinbase proceeds to increase its services and reach to an ever broader consumer base, lately showing plans to go into the Japanese crypto marketplace and launch a new suite of products that target important institutional investors.
The market has also made progress with its movement become a totally SEC-regulated broker dealer via its latest acquisition of a financial services firm. This would allow it to provide blockchain-based securities on its stage and further extend its trading services, for which it has reportedly been pursuing a federal banking permit in parallel.
“. . .consumer requirement for our services improved by 40x [in 2017] and also we experienced transaction volumes in November and December of that year that grew by 295 percent.”
1 disgruntled consumer is quoted as writing they believe the business is prioritizing growth over customers by “knowingly marketing a service that knows it can’t actually supply”
Criticisms are being directed at U.S. crypto market Coinbase for allegedly being underprepared and overwhelmed with the pace of its expansion, Business Insider accounts today, June 22.
Recurrent among the complaints are users’ reported problems in obtaining funds, together with Mashable supplying evidence of widespread frustration at either being locked from access, apparently not receiving because funds, or facing issues transferring funds between accounts.
A Coinbase spokesperson reacted explaining that:
Mashable’s critique indicated significant delays from Coinbase in reacting to network errors that prevented customers from either making advantage transfers, obtaining transaction histories, or trading to the stage.
1 user cited by Mashable went so far as to accuse Coinbase of acting “criminally,” while some other alleged they “believe the organization is holding my funds to produce money on top of my investment.”
Mashable writes that reviewing customers’ offenses shown a “troubling pattern” which indicated that most users were attributing their losses into the exchange’s alleged mismanagement.
Coinbase informed Mashable that the company has improved its service group “by over 150 percent” in the last couple of months, and now is currently “able to resolve issues faster, decreas[ing] that the backlog by 95 percent. ”
At minimum, the records imply a failure to keep up with client inquiries, that, as Business Insider notes, may be credited to the company’s sky-rocketing expansion: at October 2017, Coinbase reported 11.7 million consumers up 148 percent from 4.7 million users that the previous year.
Published at Fri, 22 Jun 2018 20:34:00 +0000