"Coinbase Referral Bonuses Have Increased From $25 to $75!" - What?

[HostFat]

https://blog.coinbase.com/2015/08/20/our-referral-bonuses-have-increased-from-25-to-75/

A month ago we launched a revamped version of our referral program, and it has been an outstanding success. Since then, we’ve paid out over $20,000 in commissions to people who’ve referred their friends to Coinbase (and helped them get their first bitcoin).

Our referral program is simple. For each person you refer who buys at least $100 worth of bitcoin, we’ll pay you a referral bonus. That bonus used to be $25, but today we’re increasing it to $75. We’ve crunched the numbers and decided we want to invest in Bitcoin’s growth for the long term and increase our support for the people and companies that are bringing new users to Bitcoin. Luckily, we have the capital to do just that.

How is this possible? 

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[Kasawari]

maybe coinbase wants to increase its subscribers based in the US
I thinks US based are the only ones who can buy bitcoins through their site... correct?

[HostFat]

Maybe, but the ref is available even in Europe, and they give 75 euro now :|

[Quickseller]

They are expecting that many people end up buying more then $100 worth of bitcoin when they are referred by a friend.

I am not sure how much the average user buys/trade when they are referred to coinbase, however I would assume that it is a lot over time otherwise this kind of promotion would be horribly unprofitable for them.

Coinbase only makes ~1% off of users when they buy/sell from them so a referral would still be unprofitable for them if the referral only purchased $100 worth of bitcoin and they gave the referrer a $25 bonus.

[KeyserSozeMC]

1000 ATMs will be placed in Greece.
Coinbase is backed by really BIG VCs.
They're trying to grab as many users possible before new bubble.

[Za1n]

1000 ATMs will be placed in Greece.
Coinbase is backed by really BIG VCs.
They're trying to grab as many users possible before new bubble.

Coinbase doesn't need to give out free money to get business, people come running to them.

I think a really good theory is they want to get more users stuck in their honeypot, and collect all their info so they can submit an extensive list of every bitcoin user to the government. Something just doesn't seem right here.

They're giving out $75 to users that aren't likely to buy much more than the first $100, yet they are permanently banning people who give them hundreds of thousands of dollars of business, and they file reports to the government on them. How does that make any sense? Maybe 1,000-10,000 of these new signups will equal the profit of 1 solid bitcoin dealer that they throw out, and they're throwing them out left and right.

You probably just answered your own question. They would rather have 1,000's of smaller, honest customers than a few big money laundering/drug dealing types whose actions could lead to them getting into legal trouble and risk their entire operation. Makes perfect sense.

[HostFat]

Maybe they are just trying to be bought by Paypal

[kingscrown]

yes i think using coinbase in US right now is... really risky.

[yakelbtc]

I sign up in coinbase but I did not recieve the $5 free? How can I get the $5 free

[Possum577]

Your paranoia is impressive. You've listed a bunch of reasons here that support Coinbase's decision to run this promotion

Coinbase is stifling the entire Bitcoin trade, especially by marking people who trade in medium to high volume. So I think they're trying to get more people marked and their info documented, it'll be a map to everyone who uses bitcoin. $75 of bitcoin is especially irresistible to people who already use cryptocurrency.

Maybe they're not stifling the entire Bitcoin trade. Maybe they're feeling victim to Xapo's security assurances. Maybe they're feeling victim to all the other options that allow people to maintain custody of their coin. Yet you assume that this is purely to document everyone using bitcoin? The effort involved int that, in something that doesn't earn them revenue, isn't logical for any business.

The only reason coinbase isn't facing any legal trouble is they give all their info to the government without any resistance, regardless of legal justification. Exactly what the government needs to get inside the bitcoin world.

They're subject to the same laws as all US based Bitcoin "banks". And those other Bitcoin "banks" aren't facing any legal trouble! Both firms have had to limit operations in some states due to American laws...what makes you think Coinbase is getting a free pass from the Feds? There's literally NO evidence to support such a claim.

A large % of people who use coinbase for a decent amount of bitcoins, even if it's just the $1k weekly limit, get multiple banks shut down due to the way coinbase reports things to banks. Doing business with coinbase can be financially crippling if you're a serious Bitcoiner who does real business of any kind.

A solid reason why Coinbase may need to create a "too good to be true" promotion!

I have never seen a company that is so malicious towards good customers, they don't even give people a fair chance to present the documents coinbase asks for if your account is suspended. They cancel all your orders, report you, and if you ask any questions about the exact documents they need they assume that is your final response and send an email saying your account is now banned.

Sounds like you're speaking from personal experience. Maybe Coinbase want's to treat their customers better...this is a great way to do it!

Is possible Coinbase could be doing this because they know that it would A) generate a spike in new wallet holders and accounts, B) generate a lot of talk on forums, and C) earn them some serious brand recognition outside of their existing market footprint? YES! YES! YES!

[favdesu]

I think the cost for a new sign-up (advertisement, server costs etc.) is something around $100 for them. that's why it still makes sense to increase the affiliate payout.

[NorrisK]

Isn't this just asking for people to scam the system?

Sign up through vpn on own referral link. Buy 100 dollar bitcoin, send to other exchange. Get 75 dollar, buy bitcoin, send to other exchange. Cash out or keep 175 usd worth of bitcoin for the price of 100?

[tadakaluri]

US$75 for each referral is very huge.  This is good opportunity for internet marketers to promote their referral link to new Bitcoin investors.

[lottery248]

1000 ATMs will be placed in Greece.
Coinbase is backed by really BIG VCs.
They're trying to grab as many users possible before new bubble.

i have to go to buy bitcoin immediately, as people would be mad on bitcoin, leading to the rise of bitcoin.

[marcotheminer]

They make much more (I assume) by collecting user data.

[pedrog]

Maybe, but the ref is available even in Europe, and they give 75 euro now :|

Can't check my account right now, but it was 25 euros, if now it's 75, that's a very good incentive, a great one...

[DaddyMonsi]

first Coinbase applied for a BitLicense in New York which scares some Coinbase users
and now they increased bounty for referral who buys $100 worth of bitcoin, they want more users?

[pedrog]

first Coinbase applied for a BitLicense in New York which scares some Coinbase users
and now they increased bounty for referral who buys $100 worth of bitcoin, they want more users?

They are valuing each user at at least $100, in a fintech company that doesn't seem a big value, each user must worth much more.

What's the current Coinbase's valuation?

[favdesu]

first Coinbase applied for a BitLicense in New York which scares some Coinbase users
and now they increased bounty for referral who buys $100 worth of bitcoin, they want more users?

they tweeted today that they're supporting Gavin's XT proposal too. suspicious to say the least

[Elwar]

Isn't this just asking for people to scam the system?

Sign up through vpn on own referral link. Buy 100 dollar bitcoin, send to other exchange. Get 75 dollar, buy bitcoin, send to other exchange. Cash out or keep 175 usd worth of bitcoin for the price of 100?

Sign up, verify your account with KYC documents, bank account...


I am considering going on Facebook and telling everyone I'll give them $50 if they go sign up and buy $100 worth of bitcoins on Coinbase. Free money.

[Thekool1s]

Isn't this just asking for people to scam the system?

Sign up through vpn on own referral link. Buy 100 dollar bitcoin, send to other exchange. Get 75 dollar, buy bitcoin, send to other exchange. Cash out or keep 175 usd worth of bitcoin for the price of 100?

nope they require you to provide your ph number for validation and i think some documents are required for buying.

[jacktheking]

Isn't this just asking for people to scam the system?

Sign up through vpn on own referral link. Buy 100 dollar bitcoin, send to other exchange. Get 75 dollar, buy bitcoin, send to other exchange. Cash out or keep 175 usd worth of bitcoin for the price of 100?

Sign up, verify your account with KYC documents, bank account...


I am considering going on Facebook and telling everyone I'll give them $50 if they go sign up and buy $100 worth of bitcoins on Coinbase. Free money.

Interesting. You can also advertise on GPT site or app that you're giving 50% cashback for people to buy 100 USD worth on Bitcoin. This way... for every 10 people you get, you earn a profit of $250 USD.

[Kakmakr]

first Coinbase applied for a BitLicense in New York which scares some Coinbase users
and now they increased bounty for referral who buys $100 worth of bitcoin, they want more users?

they tweeted today that they're supporting Gavin's XT proposal too. suspicious to say the least

Believe me, they have done the math and they know their business. Some of that, they will get back in fee’s and it’s also a company marketing expense with some tax incentives.

They already support the government by adhering to all the AML and KYC regulations you have to pass before you can register on their site.  

For that reason, I am out! <Dragon's Den> ^Blink blink^

[Mickeyb]

So what do you exactly need to get this referal?
Will this work from France, with the French bank account? I have to have a US phone number for verification or not? Do I need to send documents later and do a KYC? And do I need to actually buy bitcoins later in order to get this referal done?

Thanks guys.

[medUSA]

For each person you refer who buys at least $100 worth of bitcoin, we’ll pay you a referral bonus. That bonus used to be $25, but today we’re increasing it to $75.

How is this possible? 

I believe less that expected number of new users signed up and they need to up the bonus to create more incentive.

Sign up, verify your account with KYC documents, bank account...

That's why! The KYC policy is hindering new users to buy bitcoins. They have regulations to follow.

[pedrog]

So what do you exactly need to get this referal?
Will this work from France, with the French bank account? I have to have a US phone number for verification or not? Do I need to send documents later and do a KYC? And do I need to actually buy bitcoins later in order to get this referal done?

Thanks guys.

I believe so, usually the bonus is same number in dollars, euros and sterling pounds.

Verifications needed are on a country basis, in France should be citizen's card and proof of residence.

In order to get the bonus a at least 100 euros bitcoin purchase has to be made, transfered by bank account.

For each person you refer who buys at least $100 worth of bitcoin, we’ll pay you a referral bonus. That bonus used to be $25, but today we’re increasing it to $75.

How is this possible?  

I believe less that expected number of new users signed up and they need to up the bonus to create more incentive.

Sign up, verify your account with KYC documents, bank account...

That's why! The KYC policy is hindering new users to buy bitcoins. They have regulations to follow.

Coinbase is worth $400 million, it has 2.5 million users, so each user is worth something like $160, if they are paying $75 for each new user who buys bitcoin, it's a bargain.

KYC is in place for many years now, it never hindered businesses who require it to operate like poker sites, gambling sites, sports books and so on.

[alfie_moon]

Seems kind of desperate to me... 

[Denker]

I wouldn't even recommend Coinbase to friends and colleagues of mine if the bonus is $150.
All this KYC/AML and arbitrarily closing of accounts is the last thing I want to happen to close people of mine.
Coinbase is history for me.

[pedrog]

Just checked my account, can't find the referrals page, maybe it's only enable for USA.

It was available when it was 25 euros...

[allthingsluxury]

That is a shockingly high number, I have to agree.

[BTCBinary]

This is possible because Coinbase is tring to get more than half of the bitcoin users working with their services...

[pedrog]

That is a shockingly high number, I have to agree.

Not really, it's common to see campaigns from poker sites offering up to 120 euros for new users, and the requirements are usually much lower than 100 dollars purchase.

[LiteCoinGuy]

1000 ATMs will be placed in Greece.
Coinbase is backed by really BIG VCs.
They're trying to grab as many users possible before new bubble.

that will never happen.

[favdesu]

Isn't this just asking for people to scam the system?

Sign up through vpn on own referral link. Buy 100 dollar bitcoin, send to other exchange. Get 75 dollar, buy bitcoin, send to other exchange. Cash out or keep 175 usd worth of bitcoin for the price of 100?

Sign up, verify your account with KYC documents, bank account...


I am considering going on Facebook and telling everyone I'll give them $50 if they go sign up and buy $100 worth of bitcoins on Coinbase. Free money.

Yeah get all your friends honeypotted by the government, real smart idea there bud.

I was pretty neutral standing for coinbase, UNTIL they announced their support to XT. it's certainly more dangerous to use now.

[pedrog]

That is a shockingly high number, I have to agree.

Not really, it's common to see campaigns from poker sites offering up to 120 euros for new users, and the requirements are usually much lower then 100 dollars purchase.

But it's not common from coinbase, and it's at the same time there's a good versus evil battle involving bitcoin and bitcoinxt.

This is like laying traps to kill all the raccoons in your yard.

It's about how much a user is worth:

Coinbase is worth $400 million, it has 2.5 million users, so each user is worth something like $160, if they are paying $75 for each new user who buys bitcoin, it's a bargain.

They are being cheap paying only $75.

[RGBKey]

That's crazy..$75 for a $100 purchase? That can easily just be sold back? I hope this doesn't get abused because it's a great way to get people into bitcoin.

[BitUsher]

It's about how much a user is worth:

Coinbase is worth $400 million, it has 2.5 million users, so each user is worth something like $160, if they are paying $75 for each new user who buys bitcoin, it's a bargain.

They are being cheap paying only $75.

Exactly, they are leveraging the Venture capital fundraising to accelerate user adoption and dominate a greater percentage of marketplace.

https://www.coinbase.com/about

They have 2.5 million users (unique) and 3.8 million wallets. Thus there is at least double that that currently use bitcoin outside them they could immediately attract as they open up in new emerging markets.