Coinbase Re-released 3x Leverage after Three Years

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US-based crypto trading platform Coinbase Pro unraveled that it will once again implement three times leverage in margin trading for their loyal customers.

Coinbase effectively marketed its 3x leverage feature for Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) last 2017 via Twitter. Shortly after, there was a sudden crashing of Ethereum, and the asset dropped from USD 317 to USD 0.10 at a mind-boggling pace. This tragedy forced the company to pull back the feature, especially since the Commodity Futures Trading Commission (CTFC) started investigating them after the crash.

A Coinbase spokesperson explained that they decided to stop the feature three years ago because they felt that it was not right for them to explore it during the time. Since then, they used the experience as their lesson and further improved the algorithms to provide the best user experience for their customers.

After careful consideration, Coinbase realized and decided that it is their responsibility to offer a sufficient amount of leverage for trading once again. Thorough research on analyzing the crypto marketplace had a significant influence on this decision, said the Coinbase spokesperson. The company also announced this decision last February 12 on its blog, further specifying which countries and states are qualified to take advantage of the leverage.

As of now, Coinbase will continue hosting their 3x limit, despite the 100x and higher leverage offered by competing platforms such as BitMEX and Binance.

Coinbase further discussed that the leverage is available for retail and also institutional users. However, the feature will only be available to 23 states, and the customers should have records of their accounts, proving that they are regularly active and qualified for the margin. For institutional users, the feature is available for forty-three states and nine countries.

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