Coinbase is Technically a Casino and Should Be Regulated as Such, Max Keiser Says

The leading US-based cryptocurrency exchange, Coinbase, announced yesterday that it plans to explore new altcoins and take them under consideration for future listing on its platform. As a result, the prices of the mentioned altcoins spiked substantially.

According to Max Keiser, however, some of the coins exist only to be listed on Coinbase, making the latter “technically a casino.”

Coinbase Exploring a Set of New Coins to List

Coinbase is the leading cryptocurrency exchange in the United States, and it has recently announced that it’s exploring a set of new altcoins to list for trading.

“Coinbase’s goal is to offer support for all assets that meet our technical standards and which comply with applicable laws.” – Reads the report.

In a lot of the case, when a cryptocurrency gets listed on a popular exchange, its price reacts positively. Even though the altcoins that Coinbase will be exploring haven’t been listed yet, most of them saw a sizeable price increase.

While some of the cryptocurrencies that Coinbase plans to look at are well-known within the community, such as VeChain, Bancor, DigiByte, Siacoin, and so forth, others are not even listed on CoinMarketCap.

This caused quite the reaction.

“Coinbase is a Casino”

One of the more vocal reactions to the exchange’s announcement came from Max Keiser, a well-known commentator and bitcoin pioneer.”

According to him, “Coinbase is technically a casino and should be regulated as such. The company is operating outside CA law.” He thinks that because the exchange is listing coins “that exist only by virtue of being listed on Coinbase.”

.@coinbase, by listing phantom coins that exist only by virtue of being listed on Coinbase is technically a casino and should be regulated as such. The company is operating outside CA law.

— Max Keiser (@realmaxkeiser) June 10, 2020

Another bitcoiner and meetup organizer also weighed in on the matter, arguing that “Coinbase is complicit in helping sophisticated Silicon Valley investors dump on low information retail investors.”

Meanwhile, the exchange continues to experience outages during sudden Bitcoin price swings. As CryptoPotato reported recently, the last time this happened, it was because of an increased traffic spike.