Fading Compliance Aura: Coinbase’s “Noble Indifference” is Becoming Increasingly Dangerous
Alternatively, you could view this article as a “FUD piece” about Coinbase.
(Background: Coinbase, Circle, and several other giants intend to apply for a “U.S. banking license.” Is the era of on-chain banking approaching?)
(Additional Background: 27 years ago, a proletarian; today, Coinbase founder’s entrepreneurial secret to an $8 billion fortune)
Within the regulatory moat built around it, Coinbase stands as the “golden signboard” in the compliance realm. However, as this aura of compliance fades, its “noble indifference” is becoming increasingly perilous. Feedback from the community is ignored, customer service response is slow, and transaction fees are high… These issues are leaving more and more users feeling disappointed and dissatisfied. A pressing question arises: without the benefits of compliance, what remains for Coinbase?
Where Have Individual Users Gone?
According to CryptoQuant data, the index of individual investors on Coinbase is merely 18.3%, far below Binance’s 89.6% and Bitget’s 50.1%. This index reflects the activity and influence of individual investors relative to institutional investors on the exchange; a higher value indicates a larger proportion of individual investors in the user base. Behind this data lies the revelation that Coinbase has long focused on compliance and institutional strategies, gradually distancing itself from ordinary users. The platform’s appeal and stickiness in the mass market are declining. This sentiment has been widely echoed in the community, with increasing negative reviews about Coinbase in both Chinese and English communities, and user voices are growing louder.
Source: CryptoQuant
Coinbase’s “Account Credit Mystique”
Some users have reported that when two transactions are processed in the same block, Coinbase’s system may only credit one transaction, while the other may take days of back-and-forth with customer service to resolve. User @0x4848 stated, “I said it was a bug; they said it was a feature to protect the safety of funds.” Issues framed as “for safety” without an efficient and transparent handling mechanism can lead to a depletion of users’ patience and trust.
Customer Service: Slow is the Norm
Coinbase’s customer service system has long become a “concentration camp for complaints.” Many users have reported that Coinbase’s AI assistant is virtually useless and fails to resolve issues effectively. Once users opt for human customer service, the nightmare of waiting truly begins. Human customer service representatives have very limited authority and often can only “record the problem and escalate it.” According to user feedback, initial responses can take at least 48 hours, and resolving a problem completely may take a week or even longer. Additionally, some users claim that the customer service communication mechanism is chaotic and inefficient. “They keep asking me for the same information via email; I provide it, and they say it’s not enough,” user @MattLGov stated. “Dealing with Coinbase customer service is absolutely a dreadful experience.”
Source: @0xPonga, @MattLGov
Outside, Scams Lurk; Inside, Employee Misconduct
Coinbase users frequently become targets of scams. On-chain detective ZachXBT revealed that related cases in the last month alone resulted in a staggering $46 million in financial losses. Meanwhile, internal data security issues have also surfaced at Coinbase. Mike Dudas, co-founder of The Block, stated on X platform that he received an official email indicating that an employee may have improperly accessed some users’ account information, including his own. The email stated, “We detected signs that an employee may have viewed a small number of customer account records in a manner not compliant with internal policies.”
The Indifference of “Read and Ignore”
In terms of user communication, Coinbase’s presence is almost nonexistent. It does not cater to retail investors and has not established effective user communication channels. Whether it is the CEO or the executive team, they rarely respond publicly to user issues on social platforms, even amid a torrent of complaints and questions. It is rare to see anyone from the company step forward to clarify or explain.
This kind of “silence” may stem from cultural background and regulatory considerations, but the result is that users’ voices are difficult to be heard.
Source: @WutalkWu
“Noble” Transaction Fees
User @hyperunit compiled the costs of purchasing 1 spot Bitcoin at mainstream exchanges based on initial fee levels, revealing that Coinbase’s fees amount to $329.68, placing it at a higher level. Additionally, community user @Tmzhao1 pointed out that to obtain the same fee level as regular users on Binance, one must start from VIP 0 on Coinbase, complete approximately $250 million in trading volume, and pay over $300,000 in cumulative fees. Although Coinbase Pro (now Advanced Trade) offers lower fee options, its interface is relatively complex, making it unfamiliar and difficult for many ordinary users.
Coinbase’s compliance aura is undoubtedly the cornerstone of its stronghold in the U.S. market. However, as it increasingly relies on institutions, it seems to be gradually diminishing its connection with ordinary users. On this path of pursuing compliance and safety, Coinbase is quietly sacrificing user experience, abandoning the meticulous refinement of platform operations and services. Behind the advancement of this giant ship lies the scattered whispers and expectations of countless users, whose voices are gradually swallowed by cumbersome processes and indifferent mechanisms.
