Coinbase Faces Backlash Over Delayed Super Bowl Predictions Payouts
Coinbase is going through mounting criticism from customers after many individuals in its Super Bowl “Big Game Challenge” prediction market contest reported delayed or lacking payouts, even after qualifying for shares of the marketed Bitcoin prize pool.
Community complaints and technical points spotlight the rising pains of prediction markets as they surge in reputation whereas confronting regulatory, operational, and infrastructure challenges.
Coinbase Payout Issues Highlight Prediction Markets’ Growing 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 Big Game 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 edge for eligibility, just for a later electronic mail to declare they’d not gained.
“According to the Coinbase app, I had gained the Big Game Predictions with 5 appropriate predictions with $5 guess on every prediction. It advised await my payout. However, 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 in a roundabout way? They said.
However, help responses seen in some threads point out that rewards are being held till all prediction markets and mail‑in entries are settled, in step with the competition’s official guidelines.
Coinbase has beforehand said winners will obtain Bitcoin rewards instantly into their accounts by February 23, 2026.
However, the dearth of transparency and account migrations has pissed off customers making an attempt to verify settlement standing.
“We fully perceive how essential that is to you. Verified winners will obtain their prize instantly into their Coinbase account. The prize quantity will probably 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 explained.
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. Partner platform Kalshi, which gives the backend for Coinbase’s occasion contracts, suffered deposit and transaction delays in the course of the Super Bowl resulting from overwhelming visitors.
“Kalshi does all this advert funding only for their app, to not allow you to deposit on Super Bowl Day, sounds about proper,” one consumer lamented.
Kalshi co-founder Luana Lopes Lara acknowledged slowdowns however assured customers that funds had been “secure and on the way in which.
These operational stretches spotlight how infrastructure designed for on a regular basis buying and selling might battle with spikes tied to main occasions.
Similar technical stress was noticed throughout the trade on prediction markets in the course of the championship. This suggests systemic scalability challenges for platforms providing occasion contracts below high demand.
The Coinbase backlash arrives amid a broader regulatory and authorized battleground. State gaming regulators, such because the Nevada Gaming Control 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.
Meanwhile, 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 might create products lacking deeper utility, urging a deal with hedging and danger‑administration purposes.
The present Coinbase backlash highlights the operational and communication gaps that may accompany fast product growth.
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