What does Coinbase do during "Limbo" period?
If a CB user posts fiat to their native currency wallet as an ACH transfer the money will leave the users account almost instantly but doesn’t land in the account live for usually 5-7 days. Companies like Robinhood that also use ACH make users funds available as soon as the ACH verified the transaction amount, so almost instantly. It feels like CB is using the money in limbo to add to their gains by playing the market during limbo. As part of this experiment, I made a transaction to exchange my fiat currency directly into ETH. They claim to lock you in at a price while the ACH is being transferred, but I’ve never ever seen a company that buys something on your dollar for you and gives you no control over it for X days while the transaction completes. After calling CB they won’t give anyone any information or insight - they refuse to talk about it. I spent over an hour on the phone with them moving up to the highest manager I was allowed to speak with and they have no answer for this question.
So if a user buys let’s say $850 in ETH at $850 per ETH they will not confirm nor deny if that purchase is made immediately or not. But if the price of ETH is down to $800 when it lands in a users account are they pocketing the difference? If they aren’t then they have to exchange for users on credit. Maybe they are bot trading during the transfer period? All the while users have no choice but to sit and wait while money hangs in the limbo...
So, in short, where’s our money? Is it bought on credit or on our dime? If it’s not bought on my dime I should immediately be able to control my own credit, and if it is bought on my dime I should also be immediately able to control it. Obviously one should only transfer directly to the fiat currency wallet because of this issue, nevertheless, I want to know where MY money is for X days because it’s not in my bank account and I am completely without control of it.