Preview
11 Jun 2020
Are customers done with Coinbase?
Privacy concerns looming after Coinbase flirts with the U.S Government or internal house keeping?
A huge amount of bitcoin got withdrawn from the popular crypto exchange Coinbase earlier this week. About 31K BTC got withdrawn in a single day, resulting in a net flow of -20K BTC that day.
Many have linked this outflow to the controversy following Coinbase reaching out to the U.S government to offer crypto surveillance tools and sell blockchain analytics software to them, first reported on June 5.
Source: TwitterCoinbase has experienced even more public turmoil as it recently had a fall out with famous trader and author of The Incerto Series, Nassim Taleb, after not responding to his support case. This led to Taleb publicly closing his Coinbase account.
So are people leaving Coinbase? Probably not
While these episodes match well with the recent outflow of BTC, there is most likely something else behind the movement. This might be driven by Coinbase creating new cold wallets and reshuffling their funds, as it looks more like one large transaction of 20k BTC.A customer flee would probably be characterized by loads of small transaction and a falling trading volume, which has not been observed.