Coinbase (NASDAQ: COIN) now supports the meme-token $SHIB. Although many digital currency traders are excited to see the highly speculative token get a trading pair on one of the largest digital currency exchanges, Coinbase’s decision to support a meme in place of legitimate digital currency projects where real commerce and utility take place on the network is concerning.
Inbound transfers for CHZ, KEEP & SHIB are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 9AM PT on Thurs 6/17, if liquidity conditions are met. https://t.co/r2L6N477Uj
— Coinbase Exchange (@CoinbaseExch) June 15, 2021
It’s no longer about innovation
Coinbase was once a pioneer in the digital currency trading space. When there were several gray market that individuals could use to buy digital currency, Coinbase was one of the first lawful exchanges located in the United States that provided a safe and secure way to buy and take ownership of digital assets.
However, recent moves by Coinbase, such as its decision to go public via a stock exchange and its newly added support for meme coins and tokens like Doge and SHIB, show that the companies goal no longer revolves around giving individuals access to innovative technology.
Instead, Coinbase has prioritized collecting transaction fee income from purely speculative gambles like $SHIB and has put revenue growth ahead of supporting digital currency projects with a future as it aims to lure in the younger generation interested in high risk, high reward meme investments.
Yeah, I think that tx income, plus the chance to onboard SHIB's tiktok demographic in a big new way– grandpa Coinbase found a way to connect with the youths
— notsofast (@notsofast) June 15, 2021
The end is near?
There was an era where Coinbase was king, it was one of the best—if not the best—way to buy digital currency; but Coinbase’s reign has ended.
From going public via Nasdaq while coming from an industry where blockchain-based token offerings were readily available, to listing a slew of low volume, low activity, coins and tokens that are purely speculative—the Coinbase that we see today is not the Coinbase that won our hearts when it launched in 2012.
Dogecoin (DOGE) is launching on https://t.co/bCG11KMQ6s and in the iOS and Android apps within the next 15 minutes. You may need to refresh your app to properly buy, sell, convert, send, receive, or store DOGE. We will update when DOGE is fully live. https://t.co/kfx7VXfEpx
— Coinbase (@coinbase) June 3, 2021
Coinbase’s decision to support coins like Doge and SHIB should make you stop and question the vetting process that the exchange goes through when it comes to listing coins and tokens. Dogecoin deliberately markets itself as a meme and a joke, and SHIB is just an ERC-20 based dogecoin competitor that calls itself the Dogecoin killer. But neither of those blockchain networks has utility, fundamentals, or creates real value in the world.
Meanwhile, digital currencies like BSV, which are being used by governments and enterprises around the world to create solutions and increase efficiency across a variety of industries, were delisted from Coinbase for no apparent reason.
Maybe Coinbase listing SHIB is a sign that it has amended whatever listing-process it had in place when it decided to delist BSV, and maybe this listing preludes Coinbase making the decision to re-list Bitcoin SV.
But more likely than not, it’s a sign that Coinbase has changed its agenda for the worse, and is more interested in raking in transaction fees by selling lottery tickets disguised as digital currencies that come with high risk and attract individuals who are not very informed about the digital currency markets. However, as long as Coinbase is bringing in transaction fee income and growing the number of users on its platform, they do not seem to care about the products they are selling and endorsing.
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