Today’s article is Coinbase Hit By Two Class Action Lawsuits, One Alleges Insider Trading.
I bought my first Bitcoin on Coinbase, and I am sure many others did also. I was fortunate enough to move almost all of the BTC off of the exchange before 2017, before Coinbase decided to provide the government with people’s financial information. I have never personally had any issues with Coinbase, but at the same time it is obvious with this, and other exchanges, if you don’t want your information shared, then centralized exchanges are not the right option for you.
Fortunately, new decentralized exchanges are in the works and we will have more options in the future in this fight against government control over our lives.
I remember conversations in more than one Slack channel when it was obvious digital currencies were suffering from insider trading and price manipulation, but there was no recourse. This is still going on today, but in most cases there is nothing that can be done about it. For the most part, throughout 2017 everyone was profiting, so nobody was too concerned except when it directly affected their holdings.
In the article above, it appears there are some people who are going to challenge this manipulation, and it is the right thing to do. Regardless of the outcome, hopefully it prompts others to think twice about doing the same in the future.
I would be surprised if crypto exchanges like Coinbase continue to operate in the Unites States in the future. There is less regulation outside of the US, so exchanges there will have the advantage of not being forced to pay the court costs to defend themselves. Once exchanges do become decentralized, there won’t be anyone to take to court. I imagine it will all be handled much like stocks and bonds are today, as part of a financial portfolio controlled by banks. Freedom from unnecessary fees is part of the digital financial revolution we are all involved in, but many people will still pay for someone else to handle their finances.
We are still in the early stages of the revolution though, and regulations are only now starting to be created. Allegations like insider trading, and the publicity this receives, will be used by the government to convince the general public more regulation is required. The more evil the-powers-that-be can make it appear, the more easily they can take control of it.
I suppose there will be a place for everyone in crypto though. If you want to remain anonymous, the tools and coins will be available to you. If you want to simply use digital currency as an investment, those tools for you will also be available. It is an interesting time. I look forward to watching the evolution, and just pray in the end some of the freedoms we are seeking will actually still exist.
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