A Coinbase user has launched a class action against the crypto exchange for an alleged deceptive campaign on Dogecoin.
David Suski in fact accuses Coinbase of not having adequately informed him that to take part in the Sweepstakes launched on DOGE by the exchange it was not strictly necessary to buy tokens.
In fact, on the first day Dogecoin was listed on Coinbase , June 3, 2021, the company sent an email to its users explicitly stating “Trade Doge, Win Doge”.
However Suski claims that the advertising campaign of the promotion was misleading, because in reality anyone could participate for free, by sending the appropriate form with the requested information, without being forced to make any trade on DOGE.
Coinbase’s Dogecoin contest
The e-mail sent by Coinbase contained details on how to participate in the competition by trading , but on a separate page dedicated to the rules and details of the competition it was reported that it could also be possible to participate only by sending a card with data to Coinbase including name, address, email, telephone and date of birth.
According to Suski, this advertising campaign was designed explicitly with the aim of “deceiving and confusing” customers, so as to induce them to purchase at least $ 100 of DOGE in order to participate in the competition without clearly clarifying that instead you could also participate without having to buy tokens.
Suski further states that at the time of his purchase of Dogecoin on Coinbase he already had another 1,000 DOGEs in another account on another exchange, and that therefore the only reason that prompted him to buy more on Coinbase is because the company brought him. to believe that this was necessary to participate in the competition.
The class action is seeking a combined compensation of more than $ 5 million in damages for all those who would be deceived in this way.
It should be noted that on June 3 the price of DOGE fell, after having risen in the previous days, probably thanks to the news of the upcoming listing on Coinbase.
In fact, on June 1 it was down as low as $ 0.31, while on June 3 it was already up to $ 0.43. The next day, June 4, it fell as low as $ 0.36.
Therefore, the Coinbase advertising campaign does not seem to have succeeded in inducing many people to buy DOGE after the listing on June 3, also because the purchase threshold to be able to participate in the competition ($ 100) was probably too low to really increase significantly. the buying pressure on the token. In fact, the selling pressure often increases right after the listing, after having increased in the previous days, so the price tends to fall anyway.
To date it is not known how many people are joining David Suski’s class action , nor how many people have bought DOGE unnecessarily in order to participate in the Coinbase Sweepstake.