Recently, Coinbase launched a new website Coinbase Commerce that basically provides safest and easiest way for merchants to accept the digital currency. In the light of the last time when Coinbase was allegedly involved in bitcoin cash (BCH) insider trading, it can’t be said if this e-commerce site is all for the good.
Is this E-commerce site really PayPal level?
One of the top cryptocurrency exchanges in the world, Coinbase has come up with a brand new feature that is an e-commerce website. Recently, Coinbase introduced an easy and convenient way for merchants to accept the virtual currency. Now, merchants from all over the world can accept bitcoin, ethereum, bitcoin cash and litecoin payments for their products or services by using Coinbase Commerce.
According to Coinbase:
“Our mission at Coinbase is to create an open financial system, so we’ve designed this solution to serve merchants worldwide. Unlike previous merchant products we’ve offered, Coinbase Commerce is not a hosted service, so merchants have full control of their own digital currency.”
Coinbase Commerce has been compared to the popular global online payment system, PayPal. No doubt, Coinbase is one of the largest fiat-to-crypto exchanges in the US but is it really going to be big in the digital payment industry.
It has been said that the new commerce website will apply the same 1 percent fee model that is implemented for withdrawing the cryptocurrency to fiat ones in your bank account. It will certainly bring Coinbase into competition with other alternatives such as PayPal that charges 2 to 3 percent as per their fee structure.
Revisiting the old times: Coinbase Involved in Insider Trading
Well, that’s a great thought on Coinbase’s part by are we really sure that it is what it seems to be?
In December, the company conducted an investigation into insider trading right before it proceeded the distribution of its Bitcoin Cash. It all started when the company added support for BCH but this launch turned into a service outage that fluctuates the prices of BCH widely.
The prices of BCH, which was only about $3,500 on all the other exchanges, soared to $8,500 on Coinbase exchange. This led to the calls of insider trading from the company’s staff.
Theoretically, the staff can make the profits by buying BCH on other crypto exchanges with the knowledge that it was about to be added to their own exchange. This move would then, it actually happened, increase the trading volume and of course a higher price.
The fiasco of BCH insider trading certainly makes it hard to accept that it might be a good thing for bitcoin and all the other cryptocurrencies available there. This might turn out to be something that is beneficial only for the Coinbase and its associated parties. So, the right thing to do is simply wait and watch, it’s possible that Brian Armstrong would come up and tell us what’s the FUD this time!
What do you think about Coinbase Commerce? Do you think it will turn out to be a good thing for the digital payment economy? Let us know your views below!
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.