As Crypto Crashed, Coinbase Stopped Some Notifications (motherjones.com) 15
An anonymous reader shares a report:Back in November 2021, cryptocurrencies, which saw a huge surge during most of the pandemic, suddenly began to nosedive. Joe Hovde, a New York-based data scientist, decided that this might be his moment to buy into crypto: He took a risk on the price plunge and bought some Ethereum, the next most popular crypto asset after Bitcoin, on Coinbase, a crypto exchange. A couple of months later, Hovde started getting emails from Coinbase notifying him of swings in the prices of Ethereum, Bitcoin, and other tokens. Though already a steady consumer of financial news and current events, Hovde used the notifications to passively keep tabs on his investment while juggling other things. So when crypto assets began to take another nosedive in April 2022, Hovde noticed that at some point, the emails seemed to have stopped coming.
Hovde, who has worked on projects culling trends and patterns from large data sets for both tech companies and media outlets, scraped his inbox and confirmed that he'd received no emailed price notifications from the end of February to when they started back up again at the beginning of June; during that time period, Bitcoin, Ethereum, and other currencies lost dozens of percent worth of value in the thousands and tens of thousands of dollars. Coinbase's decision to stop email notifications in the middle of a dramatic cryptocurrency crash has not been previously reported. But academics who spoke to Mother Jones note that Coinbase's decision likely contributed to losses for retail crypto investors who may otherwise have sold their holdings ahead of further devaluation. The change to price updates could run afoul of federal or state consumer protection laws, they said, particularly if it hurt the wallets of any of the relatively inexperienced traders who flocked to crypto in droves during the pandemic.
Hovde, who has worked on projects culling trends and patterns from large data sets for both tech companies and media outlets, scraped his inbox and confirmed that he'd received no emailed price notifications from the end of February to when they started back up again at the beginning of June; during that time period, Bitcoin, Ethereum, and other currencies lost dozens of percent worth of value in the thousands and tens of thousands of dollars. Coinbase's decision to stop email notifications in the middle of a dramatic cryptocurrency crash has not been previously reported. But academics who spoke to Mother Jones note that Coinbase's decision likely contributed to losses for retail crypto investors who may otherwise have sold their holdings ahead of further devaluation. The change to price updates could run afoul of federal or state consumer protection laws, they said, particularly if it hurt the wallets of any of the relatively inexperienced traders who flocked to crypto in droves during the pandemic.
Stop loss (Score:1)
Re: (Score:3)
You're not wrong, but if they claimed they provided a notification service and people came to depend on it, then they deliberately chose to shut it off without notifying people that they were doing so, it's still not unreasonable for them to be held responsible for this deliberate action.
What's that you say? (Score:5, Insightful)
You cry for consumer protecftion? You cry for regulation?
But ... but ... but this is crypto! It's what you do to stick it to da man and his rules!
Re: (Score:2)
You cry for consumer protecftion? You cry for regulation?
But ... but ... but this is crypto! It's what you do to stick it to da man and his rules!
Exactly.
I shed not one tear for Crypto losers.
TAANSTAFL.
downer (Score:3)
yeah, nobody wants to be a Debbie Downer and tell clients they're about to lose all their money.
just leave 'em on their pink cryptocloud until it's gone and say "Hey, sorry! I mean... who knew?"
Crypto is a scam (Score:4, Insightful)
If you really cared about your investment (Score:4, Insightful)
You'd be actively monitoring it.
Coinbase is garbage (Score:2)
I've seen Coinbase be outright unavailable during times of market volatility. If something crazy is happening you absolutely cannot count on Coinbase. Sadly, you are better off with a VPN to some other country and a service overseas.
Unregulated Wilderness (Score:2)
Re:Unregulated Wilderness (Score:4, Insightful)
Wild swings are exactly what happens when an unregulated market has shadowy participants, rampant theft, blatent lying and a planet-sized population of marks.
Asking for crypto to behave like a known market is laughable. There are still shills spamming the forums looking to recoup their losses because yet-another-exchange is compromised, a ponzi, a cash-washing layer, or just cannot keep their lights on.
It'd be safer to play in currency derivatives.
Yeah no one wants regulation til they're on the losing side of the con.
Re: (Score:2)
"Wild swings are exactly what happens when an unregulated market has shadowy participants"
That's a joke right? ...
Have you looked at your so-called regulated markets and their wild swings if not out right manipulations?
Like
The sudden decoupling of the Swiss Franc from the Euro that was almost fatal to some brokers?
The price of oil going NEGATIVE?
The banks that are being condemned for blatant gold price fixing?
Re: (Score:2)
Wild swings are exactly what happens when an unregulated market has shadowy participants, rampant theft, blatent lying and a planet-sized population of marks.
Asking for crypto to behave like a known market is laughable. There are still shills spamming the forums looking to recoup their losses because yet-another-exchange is compromised, a ponzi, a cash-washing layer, or just cannot keep their lights on.
It'd be safer to play in currency derivatives.
It'd be safer to give your money to the neighborhood crack whore for safekeeping!
Crypto pumpers must be punished, (Score:2)
But, many of us did not get lured in, but we lost as secondary effect of this cypto mania. People who would have invested where we have invested, boosting the value of our portfolio, people who sold our investments in fire sale prices to get into crypto hurt us. Any company that participated in this crypto pump and dump scheme must be punished t
Re: (Score:2)
I agree totally the relatively inexperienced investors deserve no sympathy, no relief. They bought snake oil, it did not work, let them sleep in the bed they made.
But, many of us did not get lured in, but we lost as secondary effect of this cypto mania. People who would have invested where we have invested, boosting the value of our portfolio, people who sold our investments in fire sale prices to get into crypto hurt us. Any company that participated in this crypto pump and dump scheme must be punished to protect us. Big investment companies with marquee names, trusted name companies all lent their names and credibility to push crypto. The damage they caused to the general economy is a lot and we should not let them go scot free to create the next pump and dump scheme. We should fine them and use that funds to educate the relatively inexperienced investors so that they learn to tell hype from truth.
Boo fucking hoo.
Don't invest what you are not prepared to lose.