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A Tough Lesson in Trust and Transparency for Coinbase

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TL; DR

  • In 2021, Coinbase started accepting Dodgecoin to be traded on the exchange and launched a campaign where they planned to give away $1.2 million worth of DOGE ‘for free’.

  • While there was technically a free way to enter the contest, who uses snail mail these days (especially for a contest that literally focuses on digital currencies)?

  • Whether Coinbase was right or wrong, this is simply true feels unreliable. If there’s one thing we’ve learned about the Web3 industry in recent years, it’s that the people in this industry value to trust above all.

Full story

Another day, another crypto case in court…sort of.

We say ‘kind of’ because, while this is a class action lawsuit against Coinbase, and the do Involving Dodgecoin, that’s not it Real about cryptocurrency.

Explain lettuce.

In 2021, Coinbase started accepting Dodgecoin to be traded on the exchange.

To promote their new coin offering, they launched a campaign where they planned to give away $1.2 million worth of DOGE ‘for free’.

There were two ways to enter: Buy or sell $100 or more in DOGE; or email in an entry request without having to trade $100+.

See where we’re going with this?

While there was technically a free way to enter the contest, who uses snail mail these days (especially for a contest that literally focuses on digital currencies)?

This is our opinion on this:

First of all, this isn’t about whether crypto is a security or a commodity, or something like that. It’s about sweepstakes rules.

On the one hand, it seems like Coinbase didn’t Real doing something wrong – they said it was free and there was a free option to enter.

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But on the other hand, it’s normal feels unreliable.

If there’s one thing we’ve learned about the Web3 industry in recent years, it’s that the people in this industry value to trust above all.

While this hasn’t hurt Coinbase’s reputation too badly so far, in retrospect it probably wasn’t such a smart move.

In the end, the promotion, with legal fees and a possible payout, was probably not worth it at all.

Lesson learned (hopefully)!

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