From ChatGPT: "Coinbase’s high fees are sustained by **trust, regulation, and convenience**, which became far more valuable after the 2022-2023 exchange collapses (FTX, Celsius, Voyager, BlockFi, etc.). Here’s the breakdown: # 1️⃣ Perceived safety and regulatory clarity * Coinbase is a **publicly listed U.S. company (NASDAQ: COIN)**, subject to SEC reporting, PCAOB audits, and U.S. GAAP. * Customer assets are **segregated** and held 1:1 (not rehypothecated). * It’s one of the few exchanges that **hasn’t had a major hack, insolvency, or freeze event** in over a decade. * U.S. users value this regulatory perimeter: FDIC-linked fiat accounts, SOC 2 compliance, and legal recourse in U.S. courts. → This “trust premium” is worth paying for, especially post-FTX. # 2️⃣ Ease of use and fiat access * Instant ACH/credit card purchases, simple interface, auto tax reporting, and broad integrations (PayPal, Apple Pay, etc.). * Kraken or Gemini are slightly less polished, and Binance US has reduced fiat rails and limited availability in some states. * Retail users are less fee-sensitive when the UI and on-ramp are seamless. # 3️⃣ Reputation risk after FTX * After FTX blew up, even experienced traders migrated to platforms with **transparent audits and legal entities in the U.S.** * Binance (and Binance US) suffered reputational spillover and regulatory crackdowns; Gemini faced its Earn-program lawsuit. * Coinbase became the **default “safe harbor”** for Americans who don’t want to risk frozen accounts or opaque offshore custody. # 4️⃣ Psychology and inertia * For small U.S. investors, a few dollars of extra fees per trade feels trivial compared to the peace of mind of “Coinbase is safe.” * People rarely move platforms once KYC, bank links, and portfolios are set up. " I agree

---