Coinbase is one of the most popular cryptocurrency exchanges in the world, but it has been subject to many controversies in the past. Many people have questioned whether it’s a scam or not. While there have been some issues with the way Coinbase operates, there’s no evidence to suggest that it’s a fraud. However, some people may find it hard to trust the platform.

One of the main criticisms of Coinbase is that it has experienced several technical issues in the past. For example, in December 2017, Coinbase experienced a glitch that caused Bitcoin prices to soar over $19,000. This caused many customers to complain about the platform’s reliability and raised concerns about possible manipulation.

In addition to technical issues, Coinbase has also been accused of not having enough transparency. In 2016, the platform was investigated by the IRS for not reporting transactions of its users properly. The company claimed that it wasn’t compulsory to report every transaction, which was met with significant criticism from the community.

Moreover, the company has also faced accusations of insider trading. When Coinbase added support for Bitcoin Cash in December 2017, the price of the cryptocurrency surged by nearly 100%. Many people accused Coinbase of allowing its employees to buy Bitcoin Cash before the announcement and then selling it at a profit once the price soared.

Despite these controversies, there’s no evidence to suggest that Coinbase is a scam. It has been around since 2012 and has more than 56 million registered users. In addition, the company has received funding from some of the most reputable venture capital firms, including Andreessen Horowitz and Greylock Partners.

However, many people may find it hard to trust Coinbase due to the controversies it has faced. If you’re concerned about the platform’s reliability, you may want to consider using other cryptocurrency exchanges that have a better reputation. Some popular alternatives include Binance, Kraken, and Bitfinex.

In conclusion, Coinbase is not a scam, but it has faced many controversies in the past. While the platform has a large user base and funding from reputable firms, some people may find it hard to trust it due to technical issues, lack of transparency, and accusations of insider trading. If you’re worried about using Coinbase, there are several reputable alternatives that you can consider.