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Coinbase would be frontrunning every trade you make. This would be a direct tangible loss to you. Think of it like a GME level fiasco but carried out every few
by cuteboy19 5y ago
Coinbase would be frontrunning every trade you make. This would be a direct tangible loss to you. Think of it like a GME level fiasco but carried out every few weeks or so. Compared to that any insider trading Nancy does would be diffuse and unlikely to affect you personally.
- renewiltord 5y agoThis is a fair point. I don't trade on Coinbase, but this is what happens at other exchanges too. It is rational to prefer the Nancy-style situation over the Coinbase situation.
- nybble41 5y agoFrontrunning gets you a worse price for your trade, so traders would naturally avoid exchanges which practice it in favor of others which offer a deal. There is no natural monopoly on crypto exchange services, though regulation does tend to raise artificial barriers to entry and promote centralization. The "GME level fiasco" was only possible as a one-time event. You don't get situations like that on a recurring basis because the market adapts.
- cuteboy19 5y agoAnd yet Coinbase is one of the top exchanges in the world and routinely goes down for "unplanned maintenance" everytime a dip happens. Others are worse!