Coinbase is going through mounting criticism from customers after many individuals in its Tremendous Bowl “Massive Sport Problem” prediction market contest reported delayed or lacking payouts, even after qualifying for shares of the marketed Bitcoin prize pool.
Neighborhood complaints and technical points spotlight the rising pains of prediction markets as they surge in reputation whereas confronting regulatory, operational, and infrastructure challenges.
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Coinbase Payout Points Spotlight Prediction Markets’ Rising Pains
On Reddit and different boards, customers described complicated and irritating experiences with the payout course of. Reportedly, some customers accurately predicted outcomes within the Massive Sport however “nonetheless haven’t been paid.
Others reported winnings exhibiting briefly of their account balances earlier than disappearing with out rationalization, or payouts mirrored in USD with out transferability or entry.
Amidst these frustrations, some are calling the scenario a “rug pull,” claiming Coinbase’s app initially confirmed a win after 5 appropriate picks, the brink for eligibility, just for a later electronic mail to declare that they had not gained.
“In accordance with the Coinbase app, I had gained the Massive Sport Predictions with 5 appropriate predictions with $5 guess on every prediction. It informed await my payout. Nonetheless, I simply acquired an electronic mail from Coinbase stating that I didn’t win. Does anybody else really feel like this was a rug pull or a rip-off indirectly? They mentioned.
Nonetheless, help responses seen in some threads point out that rewards are being held till all prediction markets and mail‑in entries are settled, according to the competition’s official guidelines.
Coinbase has beforehand mentioned winners will obtain Bitcoin rewards straight into their accounts by February 23, 2026.
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Nonetheless, the dearth of transparency and account migrations has annoyed customers making an attempt to substantiate settlement standing.
“We utterly perceive how necessary that is to you. Verified winners will obtain their prize straight into their Coinbase account. The prize quantity might be a share of $1,000,000 in Bitcoin, divided equally amongst all winners. Prizes are anticipated to be fulfilled no later than February 23, 2026,” Coinbase defined.
Infrastructure Strains, Regulatory Hurdles, and the Rising Stakes for Crypto Prediction Markets
The timing of those complaints coincides with broader strains in crypto-linked prediction markets. Accomplice platform Kalshi, which offers the backend for Coinbase’s occasion contracts, suffered deposit and transaction delays through the Tremendous Bowl resulting from overwhelming visitors.
“Kalshi does all this advert funding only for their app, to not allow you to deposit on Tremendous Bowl Day, sounds about proper,” one consumer lamented.
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Kalshi co-founder Luana Lopes Lara acknowledged slowdowns however assured customers that funds have been “protected and on the best way.
These operational stretches spotlight how infrastructure designed for on a regular basis buying and selling could battle with spikes tied to main occasions.
Comparable technical stress was noticed throughout the business on prediction markets through the championship. This implies systemic scalability challenges for platforms providing occasion contracts beneath excessive demand.
The Coinbase backlash arrives amid a broader regulatory and authorized battleground. State gaming regulators, such because the Nevada Gaming Management Board, have sued Coinbase to dam its prediction markets. They argue that they represent unlicensed sports activities wagering.
These authorized actions gasoline uncertainty across the regulatory standing of occasion contracts, complicating rollout and consumer experiences.
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In the meantime, critics from inside the crypto neighborhood observe that prediction markets should mature past short-term speculative betting.
Voices like Ethereum co-founder Vitalik Buterin have warned that over-reliance on speculative contracts could create merchandise missing deeper utility, urging a give attention to hedging and danger‑administration purposes.
The present Coinbase backlash highlights the operational and communication gaps that may accompany fast product enlargement.