341–350 of 473 posts
Earlier quoted context omitted.
> Since coinbase isn’t FDIC insured Coinbase Pro is FDIC insured, makes one wonder why Coinbase itself isn't. https://pro.coinbase.com/?1416
“All USD balances are covered by FDIC insurance”; most people aren’t using them as a USD bank account. Crypto assets aren’t covered by this.
I have been trying, unsuccessfully for 2 years to validate my account on Coinbase. I have over 100k in ETH stored in their wallet, have the highest levels of access to their services but CANNOT trade because they have NO HUMANS available. Their systems DO NOT work and there is NO contact info nor any way to actually reach a person. So I have been trading with others and will never use CB for anything but cold storage…
It is probably worth reaching out to a lawyer and starting a legal suit. A legal subpeona tends to get humans involved real quick.
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…
> 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. Is Coinbase "loaning" out the Bitcoin users have deposited in it? The reason banks need the FDIC is that they loan your deposits out instead of throwing it in a vault and sitting on it, so if they go under they don'…
The statement from the CEO is to prevent a run. Why do they need to prevent a run if they aren’t farming the float?
The only other option is “we make our money on trades” however, and especially in the bigger coins, trades are expensive, and not happening as often as they would like. They would (and will, if it comes to light) likely argue that it would be violation of their fiduciary duty to allow the custodial accounts to just sit there not making money.
If exchange revenue data are public this could probably be figured out based on comparing transaction flow and revenue. My money is they are dependent on float, and probably also directly or indirectly using it to front-run. It is SOP for finance.
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…
> It’s funny to see people shocked (SHOCKED!) when crypto doesn’t have the protections of regular banking and investments. The problem isn't crypto, it's these exchanges. Nearly everyone just leaves their coins in the exchanges. They're essentially banks but with none of the protections. They even offer cryptocurrency loans, savings accounts and everything. Cryptocurrencies were supposed to replace banks but they end…
Earlier quoted context omitted.
If I was a CEO and saw how few and far between (as well as toothless) the repercussions have been for Elon Musk, I wouldn’t fear tweeting whatever I wanted either.
If you were a CEO, you'd often be set up for life with some level of financial prudence, and everything else after achieving that level of wealth seems like it'd just be for a lark or some pursuit of satisfaction/happiness.
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…
Surprised that customer positions aren't considered loans with first rights over all other lenders in a bankruptcy proceeding. The company shouldn't be playing around with these, but based on this statement it sounds like they are doing something odd and trying to run a fractional reserve system, or leveraging customer deposits for other high risk activity such that the money may not be there. Makes me think that I s…
Earlier quoted context omitted.
Maaaybe 70 y.o. moms should not invest in crypto then?
Then crypto will never be the future of money. That's their point. But honestly, most HN uses password managers -- if crypto became primary currency, that would make hacking someplace like Bitwarden or Coinbase enormous world shattering honeypots -- like Nation state targets.
That sounds suspicious to me. In UK at least client money should be segregated especially in the context of custody assets. Really shouldn't enter the same pool of assets as Coinbase's office chairs in case of liquidation
Didn't it take a fairly long while before client money laws came in even in traditional banking? I don't have a date so I could be wrong, but taking the history of british banking I have a feeling this was a relatively recent thing. Being generous, we're still within the first decade of crypto as an investment instrument, I imagine regulations haven't quite caught up so really it's no surprise newer crypto companies…
>it's no surprise newer crypto companies like Coinbase aren't particularly serious about keeping client money/assets separate.
I'd say the opposite. As crypto company I'd be expecting the regulator to be on my ass from day 1 above the pettiest things.