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Author Topic: Coinbase shuts down GAB.AI account  (Read 34 times)
Hydrogen
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June 18, 2018, 08:17:43 AM
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Gab, a social network messaging platform that describes itself as a place “where people, free expression, and individual liberty come first,” has announced that its Coinbase account was suddenly closed by the popular US-based crypto exchange.

Gab is a relatively young social networking platform launched in August 2016 as a response to censorship controversies involving major social media companies — such as Facebook and Twitter — which founder and CEO Andrew Torba calls “the entirely left-leaning Big Social monopoly.”

It has been battling this “Big Social Monopoly” in court with a legal fund that accepts donations in PayPal, Bitcoin, and Ethereum. In an email to Breitbart Tech, Torba claimed the Gab Legal Fund “will be used to directly explore any and all legal options against the anti-competitive actions of the Silicon Valley oligopoly.”

Now, the alternative social network announced that Coinbase has closed its account on the exchange — presumably used to send, receive and cash out cryptocurrencies — without providing any specific explanation.



Gab, meanwhile, slammed the move, calling the centralized cryptocurrency exchange “cancer,” saying:

Coinbase has banned Gab’s account. Centralized crypto exchanges/wallets are cancer and contradictory to everything crypto stands for.

Social commentator Kevin Pham, however, believes he may know why the San-Francisco based exchange decided to shutter Gab’s account. Pham pointed to a recent tweet from Gab that suggested “crony capitalism” could have been behind yesterday’s SEC announcement that Ethereum is not a security.



Torba created the alternative social network “after reading reports that Facebook employees suppress conservative articles.” His platform got a significant boost to its user base in November 2016 following permanent suspensions of conservative activist accounts such as Breitbart writer Milo Yiannopoulos.

The platform, however, has been accused by critics of being supportive of white supremacists and the alt-right.

On its website description, Gab vehemently opposes suppression of online speech. “Censorship and closed systems are ultimately about two things: destruction and control,” it reads. “Censorship does not create value, it annihilates it.”

In line with its anti-censorship ethos, the social network has unsurprisingly embraced Bitcoin, which can be used to transact without trusting middlemen and third-parties. In fact, it even launched its own Gab Token ICO, raising over $5 million to date in an effort to build the next-generation social network focused on supporting free speech online.

“Gab Tokens will represent tokenized equity in Gab AI Inc and are not a ‘utility token’ of any nature,” its ICO website explains. “We believe that, like many of our users, investors in Gab will be supportive of a crowdfunding campaign that champions a truly democratic approach to raising capital.”

http://bitcoinist.com/centralized-crypto-coinbase-shuts-gab/

Coinbase closing Gab's account seemingly for no apparent reason appears to be a political move. This will likely be classified as a censorship or freedom of speech issue.

Coinbase is currently being investigated / sued for alleged insider trading:

Quote
Coinbase Is Getting Sued for Insider Trading

The lawsuit alleges that some were tipped off ahead of the release of Bitcoin Cash on the platform.

https://motherboard.vice.com/en_us/article/pam4xn/coinbase-insider-trading-lawsuit-gdax-bitcoin-cash

One interesting question here may be whether regulation makes it easier for coinbase to centralize crypto currencies and possibly discriminate against those whose political views or ideologies it does not approve of.

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June 18, 2018, 08:36:05 AM
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This reminds me of the late Dictator/President of Uganda's (Idi Amin) comment that there's freedom of speech but one can not guarantee freedom after speech .Exact scenario is being played by Coinbase and Gab.

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June 18, 2018, 11:52:28 AM
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They say that centralized exchange platforms are a cancer,but they had a Coinbase account. Grin
If Coinbase is a "cancer",why the Gab team was using it as their main wallet?This is kinda hypocrite.
I`m not surprized that their wallet is closed.Coinbase is a servant of the US authorities and the US authorities want full control over all kinds of social networks.

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June 18, 2018, 12:59:02 PM
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People still don't understand that crypto related services are as bad as traditional financial services. If you want to avoid falling under their terms and political bias, then don't use them. Coinbase is nothing more than a crypto bank trying to satisfy those on top of the food chain, and with how severely regulated they are, things will only become worse, especially when Coinbase is granted a banking license.

At some point Coinbase and other exchanges will share blacklists in order to prevent people banned from one service to use other services. It's the same form of exclusion we are trying to escape from in the regular system. This is the direct (negative) side effect of a growing crypto economy. This is no longer the niche it once was.

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June 18, 2018, 08:53:21 PM
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I agree with 1Referee completely. Regardless what's happening with gab.ai, I think it's important to see how much control centralised wallets and other bitcoin services have over your funds, if you choose to use them.

The fact that you no longer hold your private keys yourself once you deposit into coinbase, and the fact that they have shown in the past that they are very willing when it comes to suspending accounts, is definitely enough for people to reconsider using them. Plus, if the sole purpose is to send and receive BTC, get a trustless desktop wallet. Works just as well honestly.

They are lucky that they got their money back. It doesn't mean that all users in the future will be able to get their funds withdrawn after they get banned, which is another thing to consider.

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