Coinbase Faces Twitter Backlash over Newsletter on Meme Coin Pepe

Coinbase, the largest cryptocurrency exchange in the United States, is facing backlash on Twitter for a newsletter article published on its website. In the article, the author described Ethereum-based meme coin, Pepe, as a coin “that has been co-opted as a hate symbol by alt-right groups,” citing the Anti-Defamation League for the description.

Pepe, which was launched in mid-April, is named after the Pepe the Frog internet meme. Over the weekend, the meme coin became the fastest Ethereum token to hit the $1 billion mark as meme coin trading topped $2.3 billion during the past week. However, the market capitalization of Pepe has dropped significantly in the past seven days, from about $1.65 billion to about $627 million, according to CoinMarketCap.

“For a few, speculation on meme coins has led to massive profits, but that doesn’t come without risks too — sometimes meme coin frenzies even precede broad declines in Bitcoin and Ethereum,” the article stated.

Coinbase Article Unsettles Crypto Twitter

The newsletter article on Coinbase ended with a disclaimer that noted: “The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Coinbase or its employees.” However, the description of Pepe as a ‘hate symbol’ appeared to have unsettled some in the cryptocurrency community, regardless.

Reacting, so-called Cryptopunk rapper, Spottie WiFi, called the Pepe community "a movement."

#DELETECOINBASE AND SHORT $COIN THIS IS A MOVEMENT NOT A MOMENT FUCK AROUND N FIND OUT IF U WANT TO @BRIAN_ARMSTRONG@COINBASE$PEPE#PEPE#PEPECOIN 🐸 pic.twitter.com/cQgDtK4tjT

Kenobi, a so-called musician and educator, noted that "Pepe is not a symbol of hate," adding that he will be closing down his accounts with Coinbase.

I will be closing my personal and business accounts with @Coinbase and moving them to @Gemini.#PEPE IS NOT A SYMBOL OF HATE@brian_armstrong, the $PEPE community DEMANDS that you retract your vulgar statement about #PEPECOIN!!#DELETECOINBASE, SHORT $COIN 👎

Also contributing, Twitter account Pauly, demanded an apology from Coinbase.

I GOT YOU A CAKE TO CELEBRATE @brian_armstrong. 🤡🤡🤡@coinbase@jconorgrogan@iampaulgrewal$PEPE DEMANDS AN OFFICIAL PUBLIC APOLOGY.YOUR STOCK DROPPED $400 MILLION TODAY. 📉FUCK AROUND AND FIND OUT. WE DARE YOU.#DELETECOINBASE 🔥 pic.twitter.com/BL5sTybCNc

Another account, Autism Capital, criticized Coinbase for passing "mixed messages."

Coinbase is refusing to list the PEPE coin, claiming it’s a hate symbol of the alt right. This is the same company notorious for listing absolute dogshit tokens all of 2020-2022. But yet at the same time, they do based things like fight the SEC. We keep getting mixed messages

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