UDAX Mobile App May Have Legal Trouble With Coinbase
UDAX is a new platform that intends to make cryptocurrency exchanges and trading platforms more accessible to people and the solution of the company for this problem is to focus on mobile. However, UDAX might face legal trouble in the future.
If you are interested in this company’s app and you do not want to start using a service that might receive a Cease and Desist order soon, this article is for you.
— UDAX (@udaxapp) July 17, 2018
What Is UDAX Mobile App?
UDAX Mobile App is a mobile option for you to use Coinbase Pro. The company has developed an app that will let you use the Coinbase Pro services via your phone, something that the original company does not allow at the moment. This way, UDAX serves as a third party app for you to access the API of Coinbase Pro on your phone.
The software offers some interesting features for the users. It has wallet management features, QR code support and also supports all the orders that you could use on the original program. Other features include charting tools and professional trading tools.
This app is already available for iOS and Android.
What Issues Might The UDAX Mobile App Have With Coinbase?
The main cause for concern with the UDAX Mobile App is that the company simply does not have the legal permission to make a software using Coinbase Pro. None of the staff of Coinbase is affiliated with nobody in this company, nor have the company licensed it in any way.
The first obvious issue is that UDAX might steal your data. While it does not look like this company has any kind of intent to steal data, you are using an unlicensed third party software and that comes with a level of risk associated with it.
Another question, which can be even more harmful to both you and the company is that it is still unclear how Coinbase will legally respond to an app that uses its name in a commercial way. As Coinbase is registered, any court of law could easily consider to be a trademark violation to use its name in advertising for another company’s products.
At the moment, Coinbase has not made any official comments over UDAX, but be sure that the legal team of the company is aware of the situation and this could severely hit UDAX if they decide to sue the company over trademark issues.
It should also be noted that this is not a free app. UDAX Mobile App costs $2.99 USD. This can cause serious issues as it not only using Coinbase Pro’s name, but also its technology and infrastructure to make money without giving anything to the original company.
On the other hand, we have many Coinbase Pro users that liked the idea of a mobile app as the web-based interface of the program is not very convenient to use on a smartphone and this one is considerably better.
The UDAX Mobile App Controversy Conclusion
As we see, there are four different outcomes for this current situation. One of them will harm both the UDAX and its users (and it is the more likely one), two will be beneficial for the company and one would a middle term.
The more aggressive way out is for Coinbase to sue UDAX. It will surely win, as UDAX’s legal situation is simply one that is indefensible. The company does not have the rights to do anything of what it is doing, so it could be victim to a cease and desist order and its users would be without the product anymore.
A more pacific way out of this situation would be for Coinbase Pro to actually launch its own mobile app. It would obviously be a better idea to use the official app of the company than an unlicensed third party and doing so would basically ruin UDAX’s business model that is completely created on top of a failure of the original company.
The two beneficial ways for the users would be if Coinbase simply lets UDAX continue to exist (which is the less likely scenario) or to license it. Licensing it can actually be a very good strategy, as the company can threat it with a lawsuit and acquire the rights to profit from the company’s program when it already has a user base.
If you are interested, feel free to use the service, but be also aware of the risks associated to it.