The big takeaway for me was that coinbase not only trades on their own exchange but accounts for 20% of its volume.
Coinbase went from being one of the "good guys" to being one of the "bad guys" really quickly here :(
There is a reason that we dont' let the exchanges trade on their own markets against their clients. It's a long learned lesson.
Especially because coinbase came out earlier and said expicilty that they don't do this
https://www.recode.net/2018/1/22/16911692/cryptocurrency-bit...
> Coinbase makes money not on bitcoin’s price but on the volume of trades — charging both the buyer and seller usually a fee between 0.25 percent and 1 percent of the total transaction size through the site. The company serves as both an exchange and a broker of deals, though it does not serve as a market maker that holds bitcoin
The NY AG has a tweet storm about this here
https://twitter.com/NewYorkStateAG/status/104209855584926515...
Question to the crypto currency community.
Who are the good exchanges now?
Where can you trade with any sort of assurance that the exchange isn't front running you or using your order flow to trade against you?
I guess this is a good place to start
https://twitter.com/dlauer/status/1042114043065126914
Also
> Circle reported that it accounted for less than one percent of the executed volume on its platform Poloniex during the most recent time period reviewed.
So the exchange backed by wall street was squeaky clean, while Coinbase comes off looking pretty poorly from an ethics stand point, that's actually a shock and pretty refreshing.
Though Wall street is alot more regulated and risk adverse so maybe that's not too surprising.
Coinbase went from being one of the "good guys" to being one of the "bad guys" really quickly here :(
There is a reason that we dont' let the exchanges trade on their own markets against their clients. It's a long learned lesson.
Especially because coinbase came out earlier and said expicilty that they don't do this
https://www.recode.net/2018/1/22/16911692/cryptocurrency-bit...
> Coinbase makes money not on bitcoin’s price but on the volume of trades — charging both the buyer and seller usually a fee between 0.25 percent and 1 percent of the total transaction size through the site. The company serves as both an exchange and a broker of deals, though it does not serve as a market maker that holds bitcoin
The NY AG has a tweet storm about this here
https://twitter.com/NewYorkStateAG/status/104209855584926515...
Question to the crypto currency community.
Who are the good exchanges now?
Where can you trade with any sort of assurance that the exchange isn't front running you or using your order flow to trade against you?
I guess this is a good place to start
https://twitter.com/dlauer/status/1042114043065126914
Also
> Circle reported that it accounted for less than one percent of the executed volume on its platform Poloniex during the most recent time period reviewed.
So the exchange backed by wall street was squeaky clean, while Coinbase comes off looking pretty poorly from an ethics stand point, that's actually a shock and pretty refreshing.
Though Wall street is alot more regulated and risk adverse so maybe that's not too surprising.