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Coinbase warns that bankruptcy could wipe out user funds

fortune.com

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Re: Coinbase warns that bankruptcy could wipe out user funds

#121

Post by nisegami »

nolok wrote: post #88
zeroxfe wrote: post #61

Earlier quoted context omitted.

That thread actually seemed like a reasonable response to balance out the "gloom and doom" from the media. Also, not sure why you think "8 twitter posts" are a such big deal -- tweets are limited in size, and twitter has a broad audience, and these types of tweet threads are very common.

Because if all he had to say was "there is no actual risk", then that's all he would have written, and it fits in less than a single tweet.

Why would anyone just take that as it is?

Re: Coinbase warns that bankruptcy could wipe out user funds

#122

Post by mattashii »

prepend wrote: post #76
pjc50 wrote: post #59

Earlier quoted context omitted.

Check your cloud storage user agreements. A lot of them involve handing a perpetual irrevocable right to the data to the company storing it.

For purposes of operating the service. Not for commercializing IP. If I on Titanic and upload it to Dropbox. A creditor during bankruptcy couldn’t use those rights to sell streams of Titanic. For coinbase, a creditor could sell the crypto stored.

> Not for commercializing IP.

Last time I checked it included commercializing IP, in at least Facebook and Twitter.

Re: Coinbase warns that bankruptcy could wipe out user funds

#124

Post by galangalalgol »

gonzo41 wrote: post #99
maccard wrote: post #84

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.

It is probably because we don't understand finance, economics or their history. There is an obligatory xkcd somewhere but I'm too lazy to find it. Software people occasionally find great solutions for existing problems pre-tech X. As experts in tech X they tend to trivialize existing domain knowledge because obviously X has disrupted all that.

Edit: I got less lazy. https://m.xkcd.com/793/

Re: Coinbase warns that bankruptcy could wipe out user funds

#125

Post by RugnirViking »

gitfan86 wrote: post #114
eatonphil wrote: post #4

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…

He probably has a disclaimer somewhere saying his tweets are "not forward looking statements" so he is only saying that as of right now in this moment there is no risk of bankruptcy

I wouldn't be sure what the man on the clapham omnibus thinks of that kind of disclaimer. He'd be exposing himself to considerable risk by relying on it

Re: Coinbase warns that bankruptcy could wipe out user funds

#126

Post by devin »

eatonphil wrote: post #4
prepend wrote: post #2

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…

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

Re: Coinbase warns that bankruptcy could wipe out user funds

#127

Post by bogwog »

skizm wrote: post #100

I feel like saying "We have no risk of bankruptcy" is the same as Musk saying "Funding secured" on Twitter. The statement is provably false and will directly impact stock price.

If I had any cryptocurrencies in Coinbase, I’d be transferring it out ASAP after reading this and the CEO’s response on Twitter trying to downplay the risk. That’s a red flag.

Re: Coinbase warns that bankruptcy could wipe out user funds

#128

Post by nathias »

> That shouldn't happen.

Why? I have no problem with this. The problem is just if you're advertising that you'r safe etc. then when you lose it isn't just a loss, it's a scam. Most of the centralized crypto will hopefully be fully replaced with defi solutions in the near future.

Re: Coinbase warns that bankruptcy could wipe out user funds

#129

Post by gitfan86 »

skizm wrote: post #100

I feel like saying "We have no risk of bankruptcy" is the same as Musk saying "Funding secured" on Twitter. The statement is provably false and will directly impact stock price.

How are you going to prove that there is a risk of bankruptcy today if the company doesn't go bankrupt today?

How are you going to prove that the phone calls and meeting with the Saudis didn't include funding commitments from the Saudis?

I'm not suggesting that these CEOs are 100% honest at all times, I'm sure they are not, but you need actual proof for fraud to have bet committed.

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