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Coinbase is not an exchange like Bitstamp or Mt.Gox. This fact is not just something buried in their T&C. Their company communication has never described their
by CyrusL 13y ago
Coinbase is not an exchange like Bitstamp or Mt.Gox. This fact is not just something buried in their T&C. Their company communication has never described their product as a tool for day-trading.
They made a promise to deliver bitcoins at a certain price and on a certain date. The original poster's issue is equivalent to Amazon promising 2 day shipping but the book came a few days late.
- gst 13y agoSo with Amazon I'd just return the product if it arrives too late. Does this work with Coinbase too?
- gamblor956 13y agoNo, it's nothing like shipping a book 2 days late. The OP has actual, recognizable economic losses as a result of Coinbase's delay. The transfer of money via ACH is a separate transaction from the Bitcoin acquisition. After the admitted delay following the Bitcoin acquisition transaction, Coinbase should have either reaffirmed that the OP wanted to purchase the coins at the original price, canceled the transaction, or acquired the coins at the then-market price. (Note, normally when the price increases, Coinbase cancels the transaction.) Consequently, the OP has a solid legal case against Coinbase. Unfortunately, for the amounts involved its borderline not worth pursuing. It's too large an amount for most small claims courts, and too small an amount to justify the time and cost of civil litigation (unless it settles at the very early stages). Indeed, based on Coinbase's record (refunding purchases if BC prices increase rather than executing the transaction), it's very likely that they are factoring this arbitrage into their business model.
- hnha 13y agoIt is pretty much like that if you buy a book to gamble with its resale value.
- deleted 13y ago[deleted]
- r00fus 13y agoThat's not the primary intention of the book - the book has intrinsic value that BTC do not. The value of BTC lies predominantly in the market value. So the book analogy is ridiculous and patronizing.
- jeremyrwelch 13y agoOP has no economic loss as a result of Coinbase's delay. OP has a loss as a result of Bitcoin price changes independent of this error.
- FireBeyond 13y agoWhich could have been mitigated -had Coinbase fulfilled their delivery, as negotiated-. Ergo, material losses.
- jeremyrwelch 13y agoYeah, fair point that he could have sold his coin the day he received it. As I mentioned in a few other comments, just seems to me that frustration over the Coinbase's error and frustration over the price swing are both being heaped only on Coinbase. I've had great experiences with the product and company, I would hate for this particular screw-up to be seen as representative of their overall service.
- apalmer 13y agoThe key here is the promise to deliver bitcoins at a certain price at a certain date. If they indeed promised to deliver on a certain date then clearly they are in violation... not sure if they really did make that promise though
- tedunangst 13y agoIt's somewhere between Amazon delivering your book the day after Christmas and TicketMaster delivering your ticket the day after the concert.
- PeterisP 13y agoIf I order a $30000 shipment of fish and you deliver them 2 days late, I have all legal rights to refuse the shipment and require the full amount back + my losses or lost profit (in the amount I can prove in court) for not having the fish back when you agreed to deliver them. You don't need to be called an exchange or sell currencies in order to be financially liable for delays; and the more perishable/volatile the product is, the larger the possible liabilities.