Allegations and charges filed on cryptocurrency exchanges by their very own users are not new to the industry though. Amidst such issues, the Coinbase cryptocurrency exchange, renowned and trusted all over the world now faces a trial in the court put forth by one of its very own users. A user filed a charge against Coinbase for guiding him wrong and making him invest in the exchange though, unnecessarily.
Coinbase’s $1.2 Million Sweepstaking
Coinbase, also known as the Coinbase Global Inc, is a well-established cryptocurrency exchange of America, founded recently in the year 2012. Coinbase is one of the most prominent exchanges of America, headquartered and found in the nation itself.
Upon a well-established market cap trade volume over the platform, Coinbase looks towards ways to expand itself. Likewise, Coinbase recently added the ever famous meme-coin, the Dogecoin (DOGE) upon its platform. This move is likely in the hope of increasing and bringing in more users to the platform.
Furthermore, on incorporating DOGE into their platform on June 3, Coinbase made a campaign to push DOGE traders upon the platform. Accordingly, Coinbase announced a sweepstake of about a whopping $1.2 million.
For this Coinbase forwarded an email to all of its users depicting the sweepstake offer and on the introduction of DOGE on its platform. For this, Coinbase used the tagline on its ad campaign ‘Trade Doge, Win Doge’.
In addition, Coinbase put out the submission of an index card with basic information like name, address and contact information for the users in order to participate in the sweepstake.
David Suski’s File Charge on Coinbase
Upon this sweepstake, a user, David Suski took part in the sweepstake. In spite of taking part in the sweepstake, Suski alleged that Coinbase had deceived and made him invest $100 in Dogecoin (DOGE) on its platform.
He put forth the charges stating Coinbase failed to communicate properly on its ad campaign that taking part in the sweepstake is completely free of cost.
In order to send the index card, it doesn’t require the users to invest a minimum of $100 on DOGE upon the Coinbase platform.
Moreover, David Suski terms he already has over 1000 Dogecoins in another exchange platform and there’s no need for him to again invest $100 on DOGE.
Furthermore, Coinbase misguided him and made him invest in the platform along with many such users.
In spite of all this, Suski demands compensation of $5 million from Coinbase upon the alleged and misguided ad campaign for the sweepstake.
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