Wednesday, September 29, 2021
HomeNewsCoinbase panics users - and offers Bitcoin compensation

Coinbase panics users – and offers Bitcoin compensation

The quarterly figures almost three weeks ago showed impressively: The US crypto exchange operator has recently grown rapidly. Perhaps a little too fast, because users’ complaints are increasing. Last weekend there was another breakdown that scared thousands of users.

Around 125,000 Coinbase users were informed by email on Friday that the settings of their two-factor authentication had been changed. An oversight, as Coinbase said the next day on Twitter. In the meantime, however, the users concerned had to worry about the stocks in their Coinbase accounts – after all, it was feared that hackers had gained access to the Coinbase accounts.

Worse still: some Coinbase users who wanted to log in to check their wallet and make the urgently recommended change to their login credentials reported according to the industry portal of days of login problems with the Coinbase app.

Coinbase promises improvement – once again

Coinbase itself has since apologized to those affected and offered compensation of 100 dollars in Bitcoin. They are aware that incidents like this can violate trust and they are working to regain that trust, the company said.

The response from the crypto community is nonetheless mixed, especially since Coinbase is making negative headlines for the second time within a few days. Already reported in the previous week CNBC of major problems in customer service. Even users whose accounts had been hacked and emptied would have received no or only unsatisfactory help from Coinbase support.

Others reported months of correspondence via email to get blocked wallets working again. Many of those affected expressed their disappointment – they would have expected more from a well-known, listed company, according to the tenor.

Little margin for error

When it comes to security and customer service, Coinbase should get the hang of it as quickly as possible, because private crypto traders are by far the company’s most important customer group. In the second quarter just ended, almost 95 percent of fee income came from business with private customers – and numerous competitors are already ready to lure them away with cheaper or even free offers.

The Coinbase share has recently benefited from the positive momentum on the crypto market and has recovered somewhat from the disappointing performance since the stock market debut in April. However, in view of the major risks for the operational business, a re-entry is currently not necessary.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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