GDAX, which stands for Global Digital Asset Exchange, is a trading platform launched by the Coinbase in May of 2016. It got rebranded into Coinbase Pro in 2018.
While some of you may know Coinbase for the ability to buy Bitcoin directly by Credit Card, Coinbase Pro is the other part of the company – the exchange that was created to accommodate not only Bitcoin trading but trading in alternative currencies as well. The exchange operates all around the world and is owned by the Coinbase Inc, which is based in San Francisco, California. Coinbase Pro is aimed at traders, trading fees are much lower and margin trading is available.
The platform is insured and backed by some of the largest investors in the industry, including Union Square Ventures, Andreessen Horowitz, the New York Stock Exchange, and many others.
One more thing worth noting is that customer funds are also FDIC insured. This means that each customer is entitled to up to $250,000 in remuneration in the event of a loss.
The Company – Security of Funds
As mentioned above, Coinbase Pro is actually run by the same company that owns Coinbase. It’s important to note that the company holds the New York BitLicnese. The New York Department of Financial Services (NYDFS) attempted to make the city a major Bitcoin trading center, but one may argue the idea backfired, because many of the key players backed-out of the 2015 proposal. As of the summer of 2017 only three companies have received the license, and this is due to the burdensome and slow regulatory procedure. Coinbase is one of those three companies.
When it comes to hacking, it’s important to note that a major attack has not struck Coinbase or Coinbase Pro. That being the case, there was a “flash crash” in Ethereum prices in June. This raises suspicion. The coin was trading at about $317, when it suddenly spiked to an alleged value of 10 cents due to a multimillion-dollar market sell order. The company proceeded to halt trading. They later claimed…