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Coinbase warns users could lose their crypto holdings if the company goes bankrupt

#2
Cold Wallets Fellas, Cold Storage...Never Park funds at least significant funds on Emis..
Crypto laws and policies change over night..
 
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#3
Coinbase, one of the largest cryptocurrency exchanges, said its users might lose access to their holdings if the company ever went bankrupt.
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Sounds to me like the "Bill Clinton, I had no sex with her"

As mentioned here, Cold Wallets are the solution for crypto holders, I'm sure the vast majority already know it.
 
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#4
It's a big warning sign. They have so far only made a billion profit but still the company is coming out with huge losses now. This is a great warning signal not to keep your cryptos at coinbase. BEWARE, use cold wallets or the safer alternatives like binance and kraken.
 
#7
They're a publicly traded company. Reason why you should hold your coins in a cold wallet is so exchanges don't get involved with paper trading and leverage the market to the nose. With that said, why would anyone use the obvious scam that Coinbase is?
 
#8
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#9
James Spader said:
Why do you call it a SCAM ?
https://www.merriam-webster.com/dictionary/scam
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Super high fees.
Shitcoin listings only. Their team buying before listing and then dumping after.
They ask for a stupid amount of information and can freeze your account and funds until you provide another stupid amount of information to please them.
The 1 week lockup.
Champion of sharing user data with the United States government.
 
#10
That's not a SCAM - the rest can be discussed!
 
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#13
Coinbase or another company is Exchange.

Best practice would be use them whenever you need them. Like Crypto -> Fiat operation or crypto->crypto exchange.
Do not store coin in them. It is very foolish to store coin in exchange.
Not your key not your coin.
Remember that If it is listed or not.

Some exchange preaching insurance against the hack. Do not believe that BS.
When major hack occurs, Insurance provider are the first to file bankruptcy.
 
#14
azb1 said:
https://www.businessinsider.com/coinbase-warning-users-could-lose-crypto-bankruptcy-earnings-2022-5Coinbase warns users could lose their crypto holdings if the company goes bankrupt
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Not your keys, not your coins. True as ever. Everyone should take time and learn about self-custody and get cool with it.

That being said, Coinbase is OG, have been long around, have a big institutional grip, are entrenched in analytics sharing with the lettersoup etc. etc.
I see chance of them going out of business low.
 
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#15
Use coinbase if you need too but keep nothing in there. The fact a custody arrangement is not in fact a true custody arrangement with ring fencing of customer assets is worrying.
 
#16
Martin Everson said:
Use coinbase if you need too but keep nothing in there. The fact a custody arrangement is not in fact a true custody arrangement with ring fencing of customer assets is worrying.
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That is very common with any custodial service. Also your neighbour bank will eat your deposit without any issue. The fdic insurance equivalent might cover a "small" portion.

That being said, solid advice.
 
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#17
JackAlabama said:
That is very common with any custodial service. Also your neighbour bank will eat your deposit without any issue. The fdic insurance equivalent might cover a "small" portion.
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In EU banks that offer custodial services the assets under custody are ring fenced and cannot be part of bankruptcy proceedings or BRRD. I would genuinely think carefully how you hold crypto.

I would also not rely on FDIC insurance which by the way almost went bankrupt during last financial crisis....lol. I discussed FDIC below 2 months ago,

https://www.offshorecorptalk.com/th...tside-the-u-s-a-be-devalued.36740/post-205801
In the unlikely event the worst does happen and Coinbase blows up better to be safe than sorry if you hold crypto.
 
#19
Martin Everson said:
In EU banks that offer custodial services the assets under custody are ring fenced and cannot be part of bankruptcy proceedings or BRRD. I would genuinely think carefully how you hold crypto.

I would also not rely on FDIC insurance which by the way almost went bankrupt during last financial crisis....lol. I discussed FDIC below 2 months ago,

https://www.offshorecorptalk.com/th...tside-the-u-s-a-be-devalued.36740/post-205801
In the unlikely event the worst does happen and Coinbase blows up better to be safe than sorry if you hold crypto.
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Let's face it: If Coinbase goes bust, the entire crypto market is finished for at least a decade.
The few remaining enthusiast will not be able to stop a complete market collapse.

However, before Coinbase goes down the drain we might see some of these obscure Crypto Lending Platforms with their unsustainably high interest rates going out of business.

Most market participants are experiencing their first major market crash and will soon learn about the meaning of "domino effect".
 
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#20
1234567890 said:
Let's face it: If Coinbase goes bust, the entire crypto market is finished for at least a decade.
The few remaining enthusiast will not be able to stop a complete market collapse.

However, before Coinbase goes down the drain we might see some of these obscure Crypto Lending Platforms with their unsustainably high interest rates going out of business.

Most market participants are experiencing their first major market crash and will soon learn about the meaning of "domino effect".
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Nah not even close. It would be a crash but soon to be forgotten and even be beneficial if 10% of coins will be taken out of supply and not available for selling for years until the bankruptcy phase is over.

Martin Everson said:
In EU banks that offer custodial services the assets under custody are ring fenced and cannot be part of bankruptcy proceedings or BRRD. I would genuinely think carefully how you hold crypto.

I would also not rely on FDIC insurance which by the way almost went bankrupt during last financial crisis....lol. I discussed FDIC below 2 months ago,

https://www.offshorecorptalk.com/th...tside-the-u-s-a-be-devalued.36740/post-205801
In the unlikely event the worst does happen and Coinbase blows up better to be safe than sorry if you hold crypto.
Click to expand...
What was with the haircut in cyprus? What is happening right now?

Such rules will be changed in a heartbeat and while you can for sure look at your whole balance, you can only withdraw 50E/day and maybe send abroad 200E.
That is what will happen. We have countless examples just in the last two years how rules change within a week (and not for the better) and you suddenly find out that you do not own anything at all but it was merely rented.

So from that I would rather own coins at coinbase than in EU banks ;)

But again as we have the same opinion on that one. Self-custody is key.
 
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