Dogecoin Developer Flags Privacy Concerns In Coinbase

Dogecoin community member and developer Mishaboar has issued a warning to Coinbase Wallet and the entire exchange ecosystem about privacy-related concerns.

Coinbase Wallet and Base Privacy Concerns

Mishaboar said Coinbase Wallet is a widely used smartphone wallet that has recently been optimized for DeFi use. Despite its popularity, Dogecoin developers believe that the risks of using this self-custody feature are generally underestimated.

Mishaboar pointed out that connecting Coinbase Wallet to affiliated accounts further raises privacy concerns when using it. He noted that this relationship completely de-anonymizes users and links transactions across multiple chains.

Privacy concerns have always been a major issue in the industry. Many exchanges are moving their activities away from centralized exchanges as regulators investigate suspicious transactions across trading platforms. The use of non-custodial wallets remains key, but this warning does not seem to alleviate tracking concerns.

Dogecoin developers pointed out that Coinbase typically does not hide the fact that it collects user data.

“Coinbase acknowledges in their terms of service that they collect a lot of information even if you do not connect your wallet to your Coinbase account,” he wrote on X’s account. “They collect information about your account, such as your username and transaction history,” and may share the collected information with authorities if necessary.

Beyond wallets, the developer also introduced Base, the company’s layer 2 scaling protocol. In addition to Base being highly centralized, Mishaboar pointed out that L2 is filled with VC-backed tokens. These meme coin activities helped push Base’s transaction metrics higher than his peers like Arbitrum.

learn to do the right thing

Due to the lack of privacy in Coinbase Wallet and other ecosystem solutions, Mishaboar advised users to do the right thing. In this regard, he pointed out that users of the exchange’s services must be law-abiding and tax-paying citizens.

He noted that this is important because failure to disclose could put users at odds with authorities and cause Coinbase to be distrusted. U.S. tax authorities are increasing their oversight capabilities to ensure everyone pays their taxes on time.

In a show of good faith, billionaire investor Mark Cuban revealed that he recently paid about $275 million in taxes. He mentioned this as a way to encourage cryptocurrency supporters to adhere to the law’s core tenets.

Related Article

0 Comments

Leave a Comment