Coinbase Sued In Relation To Promotion Of TerraUSD

Coinbase was charged to Curt according to report that they mislead people believing there were purchasing a reserve back stablecoin which is less voilatile and counterpart type of currency.

People also complain that some investors loss about $18 billion dollars within some days in may from the devaluation of the terrausd.
It was believed that investors were not inform about the voilatility of the market by Coinbase platform before the investment was carried out, probably there's no such disclaimer by Coinbase which can result them to be charged in Curt.

The Lawsuit Accuses
Coinbase

The lawsuit accuses Coinbase for not disclosing investors who invested in the terrausd on the Coinbase platform, they thought there were purchasing a stable coin which is not voilatile and risk free. But it turn out to be the other way round.
Terra was assume to be Pegged with the USD which in reality was not pegged to any reserve asset. Which later results to the devaluation of the terrausd. Ideally what happened is investors thought that terrausd is a stable coin which has less voilatility because is pegged with USD but in reality is not and Coinbase did not disclose this on the platform to the investors which results to the loss of investors fund during devaluation of terra.

How To Improve Exchange Platforms

The best way to improve the exchange platforms and secure the investors funds is to be able to make proper research on any token before listing it on the platform. There should be proper research and good analysis on any token before listing and I think if those exchanges can disclose the risk involve in any token before investors can invest it will really make sense. It should be written plain on the platform to avoid them being accused or charged in court.

Thank you for reading my post

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