As an extremely-low-frequency user of Coinbase's services, I personally wouldn't really care if, when they make necessary crypto trades to liquidate commissions or maintain requested customer/index-fund holdings, they used their proprietary position to get a slightly-better deal.
They have to make their profits somehow. And, the ultimate check on their profits is competitive offerings. Thus a slight profit here may just help them charge less elsewhere, in the fees I explicitly pay. (I can see how a professional or high-frequency trader would feel differently, though.)
But, a further clarification from Coinbase has confirmed my skepticism of the nefarious interpretation of the "20% volume" statistic. The 20% figure s driven by trades at the direction of of customers, not for Coinbase itself. See:
There's a million ways for a crooked exchange to fleece clients, but front-running is the most obvious and profitable way. If you're evaluating Coinbase, then start there.
They have to make their profits somehow. And, the ultimate check on their profits is competitive offerings. Thus a slight profit here may just help them charge less elsewhere, in the fees I explicitly pay. (I can see how a professional or high-frequency trader would feel differently, though.)
But, a further clarification from Coinbase has confirmed my skepticism of the nefarious interpretation of the "20% volume" statistic. The 20% figure s driven by trades at the direction of of customers, not for Coinbase itself. See:
https://blog.coinbase.com/correcting-the-record-coinbase-doe...