Coinbase is known as one of the easiest exchanges where an individual can purchase Bitcoin, Ethereum, Litecoin, and suddenly, Bitcoin Cash. The interface is user-friendly, it has a strong Know Your Customer (KYC) policy and it has an integrated exchange known as Gdax.
But during the last weeks, different cryptocurrency exchanges have been implementing Segregated Witness. That allows for faster transactions and lower fees in the Bitcoin network. The lack of SegWit adoption by Coinbase has a very huge and negative influence in the Bitcoin mempool.
Is Coinbase Spamming the Network?
Coinbase has a big influence in the mempool, but how do we know that? Because when Coinbase suspended the sending of Bitcoin, the size of the mempool dropped significantly. That means that Coinbase needs to implement SegWit to have a healthier Bitcoin network.
Coinbase has been under investigation after a possible case of insider trading when the company announced that they were going to list Bitcoin Cash. The CEO Brian Armstrong has also been under attack after these severe accusations. About this he wrote in a blog post:
“Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. If we find evidence of any employee or contractor violating our policies – directly or indirectly – I will not hesitate to terminate the employee immediately and take appropriate legal action.”
Beside that, Armstrong said that SegWit was not a priority on the customer’s wish list. A petition has been circulating asking Coinbase to upgrade to SegWit. More than 8,000 have been gathered, but Coinbase has not given an answer. Coinbase main intention is to offer a better customer experience, according to Dan Romero, the company’s general manager.
As we changed year two weeks ago, Romero said that SegWit was one of Coinbase’s priorities in 2018. But the main priority did not change. Coinbase’s main effort will be to offer a better customer experience. Romero explained that in 2017 the technical performance was totally unacceptable. It remains to be seen whether Coinbase will decide to implement SegWit or not.