That is not what you want ahead on your IPO.
Life savings lost. Desperate cries for help. Allegations of fraud....MORE
In the six years since its founding, the San Francisco-based exchange Coinbase has established itself as one of the most trusted places to trade ether, bitcoin, litecoin, and bitcoin cash. It's also run up its share of critics: namely, its customers.
In 134 pages of complaints filed to the SEC and the California Department of Business Oversight obtained by Mashable following a five-month FOIA process, a picture emerges not of a responsible actor in the cryptocurrency space opening the market to new investors, but rather a company overwhelmed by and underprepared for its own success.
And the consequences — as expressed by Coinbase's own customers — are enough to give even the most diehard crypto-enthusiast pause.
Money gone and no one home
A recurring theme in the SEC complaint files Mashable obtained is the seeming disappearance of a would-be trader's money, and what is portrayed as an aggressive nonchalance on the part of Coinbase in response to the loss.
Notably, the SEC redacted the complaints to remove personally identifiable information. This, while an understandable privacy measure, makes it practically impossible to reach out to the complainants for follow up. As such, we'll mostly let their words speak for themselves.
And there are a lot of words.
One complaint, filed in January of this year, is typical of the frustration expressed by many.
"I have sent 17,023.00 from my Coinbase account to another Coinbase account on 12.21.2017," it reads. "The other Coinbase account never received the funds as of 1/16/2018. I have contacted Coinbase over 7 times and all they say is that they have so many issues, they will get back to me and it is been a month."...
If interested see also:
"Coinbase Strategy Teardown: How Coinbase Grew Into The King Midas Of Crypto Doing $1B In Revenue"
"Announcing Coinbase Index Fund"
Coinbase, and the things Coinbase is doing seem to be a more realistic way for Andreessen Horowitz to make money out of Bitcoin than their 21.Co. (see below)...
Andreessen Horowitz Investee Coinbase May Buy Andreessen Horowitz Investee Earn.com (né 21.co)
That's one way to exit.
Earn.com was not mentioned in April 4's "Crypto M&A: "Three Startups Coinbase May Have Its Eye On"" because it's such a Tesla/SolarCity-cousins-shouldn't-marry type of deal.
Yet here we are....
And many more but that's such a nice progression we''ll stop here. Use the 'search blog' box if interested in more.