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https://nitter.net/brian_armstrong/status/152423348004071014... In other words: We only disclosed these risk factors because we were legally required to. Please ignore our SEC disclosure and half-billion dollar quarterly loss, and instead trust my unregulated statements posted on Twitter. There are no risk factors, your money is safe, the music will never stop.
This is not a direct quote, please don't use blockquotes. It's disingenuous.
Is the Coinbase Wallet safe to use? What would happen if Apple removed the app, would people lose access to funds stored in that wallet?
“ people with margin accounts end up as just general creditors in any bankruptcy and recover only a fraction of their assets after some years in bankruptcy proceedings. During bankruptcy, their accounts are frozen and no transactions are allowed”
https://www.bogleheads.org/forum/viewtopic.php?t=20582
(sorry couldn’t find a better reference searching on my phone)
Earlier quoted context omitted.
If you don't have significant liabilities you can't really go bankrupt. (I didn't look to see if that was the case, just making the point in general)
Nonsense. They can get hacked or introduce a bug into their stack and go bust in under an hour. That's extremely unlikely, but not impossible.
You can calculate your annualized failure rate. That's a best-case on the odds your funds will continue to exist next year. Move fast / break things / fail fast / developer sprints / etc. speeds this process up even further. Crypto companies also have a giant target painted on their backs for hackers (including rogue state-level actors, some of whom just had large sums confiscated by Western institutions).
Tulips, anyone?
Since coinbase isn’t FDIC insured, it makes sense that if coinbase goes bankrupt, the customer currencies will go away as well. And they aren’t SPIC insured in the situations where crypto is a security. It’s funny to see people shocked (SHOCKED!) when crypto doesn’t have the protections of regular banking and investments. That’s why you don’t invest with stuff that isn’t insured. Those aren’t real rates, they are ris…
You don't need to hold your crypto within coinbase, you can transfer it to a wallet you fully control.
[0]: https://www.centre.io/usdc
[1]: https://app.aave.com/markets/?marketName=proto_mainnet
[2]: https://curve.fi/pools (search USDC)
Earlier quoted context omitted.
I do wonder why he's allowed to say on Twitter there is no risk of bankruptcy [0]. While the risk could be minimal and maybe negligible saying "no risk" means zero chance. That can't be true of any company. For a public company ceo to say that, isn't that securities fraud? I guess even if it is fraud and they do get prosecuted by the SEC they'd just get fined for it. And maybe the fine here would be much less than th…
“everything is securities fraud” —Matt Levine
Earlier quoted context omitted.
I don't have skin in the game (not a crypto fan, not in the US and not an investor in coinbase), but I don't think your sarcasm is warranted here (side note for any other readers, that's _not_ what his linked thread says). Regulatory capture is _real_, and dispraportionately favours incumbents. As regulations are tightened on crypto in general, firms that are not involved in the creation of said regulations are going…
The thing with crypto is its just reinventing money and all the same crap over. Right now it's like banking in the 1820's with no parachute. Crypto isn't living up to it's PR an I don't really understand why people can't see its flaws.
Earlier quoted context omitted.
I do not believe a reasonable human would consider this statement: > Please ignore our SEC disclosure and half-billion dollar quarterly loss, and instead trust my unregulated statements posted on Twitter. As actually possibly coming from the mouth of the CEO of a company (that is not Elon).
I never would have thought a CEO would make a statement like this: >We have no risk of bankruptcy Reality is that every company has greater than "no risk" of bankruptcy. That's why regulators force them to spell out their risks in filings.
I wonder if this will cause them to go bankrupt because users get scared and leave. Just like Bear Stearns in 2008
Even if 100% users withdraw 100% of their funds, Coinbase takes a transfer fee from all of those withdrawals, so they'll get even more money in their account in that case.