A Tough Lesson in Trust and Transparency for Coinbase

TL;DR

Again in 2021, Coinbase began accepting Dodgecoin to be traded on the trade and launched a marketing campaign the place they deliberate to present away $1.2M value of DOGE ‘totally free.’

Whereas there was technically a free option to enter the competitors, who makes use of snail mail as of late (particularly for a contest actually targeted round digital foreign money)?

Whether or not Coinbase was in the proper or the incorrect, this simply feels dodgy. If there’s something we’ve learnt over the previous few years concerning the Web3 business it’s that the individuals on this house worth belief above all else.

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One other day, one other crypto case in courtroom…sorta.

We are saying ‘sorta’ as a result of, whereas this can be a class motion lawsuit in opposition to Coinbase, and it does contain Dodgecoin, it’s not likely about crypto.

Lettuce clarify.

Again in 2021, Coinbase began accepting Dodgecoin to be traded on the trade.

To advertise their new coin providing, they launched a marketing campaign the place they deliberate to present away $1.2M value of DOGE ‘totally free.’

There have been two methods to enter: Purchase or promote $100 or extra in DOGE; or mail in an entry request with out having to commerce $100+.

See the place we’re going with this?

Whereas there was technically a free option to enter the competitors, who makes use of snail mail as of late (particularly for a contest actually targeted round digital foreign money)?

Right here’s our tackle this:

First off, this isn’t a case about whether or not crypto is a safety or commodity, or something like that. It’s a case about sweepstakes guidelines.

On one hand, it appears Coinbase didn’t actually do something incorrect – they stated it was totally free and there was a free choice to enter.

However then again, it simply feels dodgy.

If there’s something we’ve learnt over the previous few years concerning the Web3 business it’s that the individuals on this house worth belief above all else.

Whereas to this point this hasn’t broken Coinbase’s fame too badly, in hindsight, it most likely wasn’t such a sensible transfer.

Ultimately, with authorized charges and a possible payout, the promotion most likely wasn’t value it in any respect.

Lesson learnt (hopefully)!