If there are no compliance benefits, what else does Coinbase have left?
Peeling away the halo of compliance, its "noble indifference" is becoming increasingly dangerous.Author: Fairy, ChainCatcher
Editor: TB, ChainCatcher
Within the moat built by regulatory advantages, Coinbase is the "golden signboard" in the compliance field. However, as the halo of compliance fades, its "noble indifference" is becoming increasingly dangerous.
Community feedback is ignored, customer service response is slow, transaction fees are high… These issues are causing more and more users to feel disappointed and dissatisfied. One question is becoming increasingly sharp: Without the compliance dividend, what else does Coinbase have left?
Where Have Individual Users Gone?
According to CryptoQuant data, the individual investor dominance index for Coinbase is only 18.3%, far below Binance's 89.6% and Bitget's 50.1%. This index reflects the activity level and influence of individual investors relative to institutional investors on the exchange; the higher the value, the larger the proportion of individual investors in the user base.
Behind this data lies Coinbase's long-term focus on compliance and institutionalization, indicating that it is gradually drifting away from ordinary users, and the platform's appeal and stickiness to the mass market are declining. This point is also widely reflected in the community, with increasing negative evaluations of Coinbase in both Chinese and English communities, and users' voices are growing louder.
Image source: CryptoQuant
Coinbase's "Accounting Mystique"
Some users have reported that when two transactions are processed in the same block, the Coinbase system may only credit one transaction, while the other may take days of back-and-forth with customer service to resolve. User @0x4848 stated, "I said it was a bug, they said it was a feature, for the sake of protecting fund security."
Such issues, "under the guise of security," can become a drain on users' patience and trust if there is no efficient and transparent handling mechanism.
Customer Service: Slow is the Norm
Coinbase's customer service system has long become a "concentration camp for complaints." Many users report that Coinbase's smart assistant is virtually useless and cannot truly resolve issues.
Once a user opts for human customer service, the nightmare of waiting truly begins. Human customer service has very limited authority and often can only "record the issue and escalate it." According to user feedback, the initial response can take at least 48 hours, and fully resolving an issue may even take a week or longer.
Additionally, some users claim that the customer service communication mechanism is chaotic and inefficient. "They keep asking me for the same information back and forth via email; I provided it, and they said it wasn't enough," user @MattLGov stated. "Dealing with Coinbase customer service is absolutely a terrifying experience."
Image source: @0xPonga, @MattLGov
External Scams and Internal Employee Misconduct
Coinbase users frequently become targets of scams. On-chain detective ZachXBT revealed that related cases last month resulted in losses of up to $46 million.
At the same time, internal data security issues have also emerged at Coinbase. Mike Dudas, co-founder of The Block, stated on the X platform that he received an official email indicating that an employee may have improperly accessed some user account data, including his own. The email stated, "We detected signs that an employee may have viewed a small number of customer account records in a manner inconsistent with internal policies." (Related reading: Lost $300 million in a year, Coinbase users frequently targeted by precise scams, is there an "insider" leaking information?)
The Indifference of "Read but Not Respond"
In terms of user communication, Coinbase's presence is almost nonexistent. It does not cater to retail investors and has not established effective user communication channels. Whether it's the CEO or the executive team, they rarely respond publicly to user issues on social media, even when faced with a large number of complaints and doubts, it is seldom seen that they step forward to clarify or explain.
This "silence" may have its cultural background and regulatory considerations, but the result is that users' voices are difficult to hear.
Image source: @WutalkWu
"Noble" Transaction Fees
User @hyperunit compiled the costs of purchasing 1 spot Bitcoin at the initial fee level across mainstream exchanges, revealing that Coinbase's fees amount to $329.68, which is relatively high. Additionally, community user @Tmzhao1 pointed out that to obtain the same fee level as regular users on Binance, Coinbase users need to start from VIP 0 and complete approximately $250 million in trading volume, paying over $300,000 in cumulative fees.
Although Coinbase Pro (now Advanced Trade) offers lower fee options, its interface is relatively complex, and many ordinary users are not familiar with or find it easy to use.
Image source: @hyperunit
The halo of compliance surrounding Coinbase is undoubtedly the cornerstone of its stable position in the U.S. market. However, as it increasingly relies on institutions, it seems to be gradually diminishing its connection with ordinary users. On this path of pursuing compliance and security, Coinbase is quietly sacrificing user experience, abandoning the fine-tuning of platform operations and services.
Behind this giant ship's journey, countless users' whispers and expectations are scattered, their voices gradually swallowed by cumbersome processes and indifferent mechanisms.
