Isn’t that how you start a run on a bank? How do these guys make money btw?
They're an exchange with high fees. They make a fortune from people buying and selling...
Coinbase warns users could lose their crypto holdings if company goes bankrupt
21–30 of 36 posts
Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt
#22Earlier quoted context omitted.
Though the WAMU failure in 2008 nearly broke the FDIC. You know the cartoon of the snake eating the elephant? It was like that. Samll banks, on the other hand, fail every week and the FDIC cleans them up so fast no one even notices.
The WAMU failure also serves as a pretty good example of the other levers available in traditional banking regulation (and the pressure on the government to find a fix) that Coinbase is unlikely to be able to avail themselves of.
The WAMU bankruptcy was difficult for the FDIC to manage, and there was no ready buyer to take the remains. But if there had been no FDIC to manage it, the result would have been catastrophic failure. Like Lehman, but with more retail banking customers getting wiped out.
Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt
#23Earlier quoted context omitted.
> Are you pretending FDIC covers more than 1% of all deposits? It doesn't have to cover all of deposits , it has to cover failures . The chances of every bank in the country simultaneously collapsing is slim (and you've got bigger problems at that point than your balance). No one's lost a penny worth of FDIC-insured funds since 1933.
Though the WAMU failure in 2008 nearly broke the FDIC. You know the cartoon of the snake eating the elephant? It was like that. Samll banks, on the other hand, fail every week and the FDIC cleans them up so fast no one even notices.
So basically a massive worst case financial crisis led to something almost, but not actually, failing.
Sounds like the system worked extremely well.
Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt
#24Earlier quoted context omitted.
Though the WAMU failure in 2008 nearly broke the FDIC. You know the cartoon of the snake eating the elephant? It was like that. Samll banks, on the other hand, fail every week and the FDIC cleans them up so fast no one even notices.
So basically a massive worst case financial crisis led to something almost, but not actually, failing. Sounds like the system worked extremely well.
I feel the same about the Trump presidency. He and his cohorts attempted to subvert the system, pen testers if you will, but the system responded and survived. In the end, we should thank Trump for helping to improve the American system of rule of law and governance.
Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt
#25Earlier quoted context omitted.
The WAMU failure also serves as a pretty good example of the other levers available in traditional banking regulation (and the pressure on the government to find a fix) that Coinbase is unlikely to be able to avail themselves of.
The WAMU bankruptcy was difficult for the FDIC to manage, and there was no ready buyer to take the remains. But if there had been no FDIC to manage it, the result would have been catastrophic failure. Like Lehman, but with more retail banking customers getting wiped out.
Congress would have given the FDIC a blank check if they needed.
Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt
#26Earlier quoted context omitted.
So basically a massive worst case financial crisis led to something almost, but not actually, failing. Sounds like the system worked extremely well.
I feel the same about the Trump presidency. He and his cohorts attempted to subvert the system, pen testers if you will, but the system responded and survived. In the end, we should thank Trump for helping to improve the American system of rule of law and governance.
The jury is out for a while on whether the result was "survived" or "gave a better playbook for next time". Those on the left would tend to argue the lack of consequences thus far encourages a more competent attempt.
Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt
#27No different than traditional banks, which have barely enough insurance to cover approximately 1% of deposits.
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Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt
#28Earlier quoted context omitted.
I feel the same about the Trump presidency. He and his cohorts attempted to subvert the system, pen testers if you will, but the system responded and survived. In the end, we should thank Trump for helping to improve the American system of rule of law and governance.
The jury is out for a while on whether the result was "survived" or "gave a better playbook for next time". Those on the left would tend to argue the lack of consequences thus far encourages a more competent attempt.
I'm confident that the people in the system have woken up to the fact that a large scale attack can come from within the system, which was previously unthinkable, and adjustments will be made to help prevent it from occurring again.
Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt
#29Earlier quoted context omitted.
The jury is out for a while on whether the result was "survived" or "gave a better playbook for next time". Those on the left would tend to argue the lack of consequences thus far encourages a more competent attempt.
I'm confident that the people in the system have woken up to the fact that a large scale attack can come from within the system, which was previously unthinkable, and adjustments will be made to help prevent it from occurring again.
No post body was provided.