Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds | |
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BlazingBear
User ID: 5267470 United States 05/11/2022 07:38 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds Hidden away in Coinbase Global's disappointing first-quarter earnings report—where the U.S.'s largest cryptocurrency exchange reported a quarterly loss of $430 million and a 19% drop in monthly users—is an update on the risks of using Coinbase's service that may come as a surprise to its millions of users. Quoting: Waffles ™ In the event the crypto exchange goes bankrupt, Coinbase says, its users might lose all the cryptocurrency stored in their accounts, too. Coinbase said in its earnings report Tuesday that it holds $256 billion in both fiat currencies and cryptocurrencies on behalf of its customers. Yet the exchange noted that in the event it ever declared bankruptcy, “the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings.” Coinbase users would become “general unsecured creditors,” meaning they have no right to claim any specific property from the exchange in proceedings. Their funds would become inaccessible. That shouldn't happen. An individual's ownership of cryptocurrency is supposed to be immutable and absolute; that's one of the key selling points touted by blockchain evangelists everywhere. But when a user creates a Coinbase account, they often end up storing their cryptocurrency in a wallet controlled by Coinbase, which means the individual is giving away at least part of their control over their own funds. Access to a crypto wallet is governed by a private key, which is a long string of characters that effectively acts as a password. Without the key, the cryptocurrency in the wallet can't be accessed. On Coinbase, the exchange holds the private key and lets users access the funds within the wallet using a more conventional password. The setup makes it easier for users to enter their accounts, by remembering an easier password. Yet it means that, when push comes to shove, Coinbase ultimately governs whether a user gets access to those assets. In comments shared on Twitter, Coinbase CEO and founder Brian Armstrong said the exchange had "no risk of bankruptcy," and that the disclosure was made due to new rules set by the U.S. Securities and Exchange Commission regarding public companies that hold crypto assets on behalf of others. "This disclosure makes sense in that these legal protections have not been tested in court for crypto assets specifically, and it is possible, however unlikely, that a court would decide to consider customer assets as part of the company in bankruptcy proceedings even if it harmed consumers", Armstrong tweeted, while reassuring users that "your funds are safe at Coinbase." Bank accounts in the U.S. are protected by deposit insurance offered by the Federal Deposit Insurance Corporation. In the event a bank fails, the FDIC steps in to protect deposits up to $250,000, preventing depositors from going broke along with the bank. Crypto exchanges don't offer that same protection less then 50% fair use act [link to fortune.com (secure)] Coinbase is not secure. They did nothing when I was hacked and lost $75,000. Take your money out of Coinbase. Store in a cold wallet. They will do nothing to help you. BlazingBear |
Anonymous Coward User ID: 80788445 United States 05/11/2022 07:40 AM Report Abusive Post Report Copyright Violation | |
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Anonymous Coward User ID: 75726060 United States 05/11/2022 07:43 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds Hidden away in Coinbase Global's disappointing first-quarter earnings report—where the U.S.'s largest cryptocurrency exchange reported a quarterly loss of $430 million and a 19% drop in monthly users—is an update on the risks of using Coinbase's service that may come as a surprise to its millions of users. Quoting: Waffles ™ In the event the crypto exchange goes bankrupt, Coinbase says, its users might lose all the cryptocurrency stored in their accounts, too. Coinbase said in its earnings report Tuesday that it holds $256 billion in both fiat currencies and cryptocurrencies on behalf of its customers. Yet the exchange noted that in the event it ever declared bankruptcy, “the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings.” Coinbase users would become “general unsecured creditors,” meaning they have no right to claim any specific property from the exchange in proceedings. Their funds would become inaccessible. That shouldn't happen. An individual's ownership of cryptocurrency is supposed to be immutable and absolute; that's one of the key selling points touted by blockchain evangelists everywhere. But when a user creates a Coinbase account, they often end up storing their cryptocurrency in a wallet controlled by Coinbase, which means the individual is giving away at least part of their control over their own funds. Access to a crypto wallet is governed by a private key, which is a long string of characters that effectively acts as a password. Without the key, the cryptocurrency in the wallet can't be accessed. On Coinbase, the exchange holds the private key and lets users access the funds within the wallet using a more conventional password. The setup makes it easier for users to enter their accounts, by remembering an easier password. Yet it means that, when push comes to shove, Coinbase ultimately governs whether a user gets access to those assets. In comments shared on Twitter, Coinbase CEO and founder Brian Armstrong said the exchange had "no risk of bankruptcy," and that the disclosure was made due to new rules set by the U.S. Securities and Exchange Commission regarding public companies that hold crypto assets on behalf of others. "This disclosure makes sense in that these legal protections have not been tested in court for crypto assets specifically, and it is possible, however unlikely, that a court would decide to consider customer assets as part of the company in bankruptcy proceedings even if it harmed consumers", Armstrong tweeted, while reassuring users that "your funds are safe at Coinbase." Bank accounts in the U.S. are protected by deposit insurance offered by the Federal Deposit Insurance Corporation. In the event a bank fails, the FDIC steps in to protect deposits up to $250,000, preventing depositors from going broke along with the bank. Crypto exchanges don't offer that same protection less then 50% fair use act [link to fortune.com (secure)] Good. People need a wake up call. |
Anonymous Coward User ID: 81687694 Brazil 05/11/2022 07:44 AM Report Abusive Post Report Copyright Violation | |
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Anonymous Coward User ID: 80867040 United Kingdom 05/11/2022 07:45 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds Amazing to see the efforts of groveling trolls that desperately dont want to see peasant useless eaters profit from great monetary opportunities such as investing in cryptocurrency during a bear market. The powers that be do not want any single peasant becoming financially independent from the NWO system.. So you will continue to see this campaign against cryptocurrency through paid shills and trolls through out the bear market until such time as the bullmarket have become established again and by that point it is too late and then you will see lots of positive posts about crypto as the NWO investors seek to maximize their portfolios before they dump them into fiat, and you are left holding the bag having made no profit and only standing to lose! |
Anonymous Coward User ID: 82616373 Bahamas 05/11/2022 07:47 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds Amazing to see the efforts of groveling trolls that desperately dont want to see peasant useless eaters profit from great monetary opportunities such as investing in cryptocurrency during a bear market. The powers that be do not want any single peasant becoming financially independent from the NWO system.. So you will continue to see this campaign against cryptocurrency through paid shills and trolls through out the bear market until such time as the bullmarket have become established again and by that point it is too late and then you will see lots of positive posts about crypto as the NWO investors seek to maximize their portfolios before they dump them into fiat, and you are left holding the bag having made no profit and only standing to lose! Quoting: Anonymous Coward 80867040 |
drax-o-logic
User ID: 83085122 India 05/11/2022 07:48 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds [link to appinventiv.com (secure)] Custodial vs. Non-Custodial Wallets: Understanding the Difference Points Custodial Vs Non-Custodial Wallet 1. Custodian of private key The foremost factor to consider when comparing the Custodial vs non-custodial wallets is who holds the private key. In case of Custodial wallets, the third party manages the private key. Whereas, in the case of Non-Custodial wallets, all the blockchain custodian services reside with users. So, in case you want to introduce a wallet where users can be their own bank, go with the idea of creating non-Custodial blockchain wallets (also known as self custodial wallets) 2. Transaction type Another factor to consider during Custodial and Non-Custodial crypto wallet comparison is the transaction type. The transaction is reflected on the chain in real-time in Non-Custodial. But, it is not so in the case of Custodial wallet. This again shows that the former leads the show. 3. Security In the case of custodial online crypto wallets, all the sensitive user data is stored in hot and cold storage, which are often hacked by data intruders. Because of this, the security level is low in custodial, unless the authoritative party implements strong security measures. Whereas, in case of Non-Custodial crypto wallet comparison, the whole information remains with users. This reduces the risk of data being stolen, unless the user shares the details with someone, or their device gets stolen. So, here again, Non-Custodial wins the Custodial vs Non-Custodial wallets battle. 4. Backup and recovery possibility When it comes to backup and recovery possibilities, self custodial wallets or non-Custodial crypto wallets lag behind the Custodial one. The Custodial wallets keep the private key with themselves. So, even if you lose the access to data, you can regain the access by requesting the third party. However, this is not possible in the case of Non-Custodial wallets where you are the sole authority. 5. Offline accessibility To access your funding and corresponding details, it is a must to login into your Custodial wallet and make a request to centralized authority. This makes it imperative to have internet connectivity. But, there is no such requirement in Non-Custodial wallets. This, in return, signifies that Non-Custodial wallets are a better option to enjoy full blockchain development services in real-time. 6. Future scope As per the cryptocurrencies market trends, Non-custodial wallets will continue to get an edge over Custodial due to the growing data breach cases and users becoming more conscious about their data privacy and security. 7. Examples Some of the popular examples of best Custodial wallets are: Free Wallet, Binance, BitMex, Bitgo, Blockchain.com. |
Anonymous Coward User ID: 79340788 United States 05/11/2022 07:48 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds It's website and app has the crappiest user interface. It constantly freezing. And the data feed is just worthless garbage! It freezes up right when you want to make a fucking trade!!! And they charge you up the ass in fees. Fuck them. |
Anonymous Coward User ID: 40073242 United States 05/11/2022 07:49 AM Report Abusive Post Report Copyright Violation | |
BLACK GHOST
User ID: 80076858 United States 05/11/2022 07:51 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds Chaos in every market so nobody knows where to put their money. "We demolish arguments and every pretension that sets itself up against the knowledge of God, and we take captive every thought to make it obedient to Christ." |
Anonymous Coward User ID: 40073242 United States 05/11/2022 07:51 AM Report Abusive Post Report Copyright Violation | |
drax-o-logic
User ID: 83085122 India 05/11/2022 07:52 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds crypto's here for the long run....calm down. Quoting: pud2.0 Bitcoin was $29k last July then to $65k in Nov. Look at the charts. It fluctuates like the tides my sisters and brothers. I've come to the conclusion you're an idiot... Trinity satoshi disagrees with you Thread: I am the Father of Cryptocurrency such as Bitcoin |
Anonymous Coward User ID: 83079724 France 05/11/2022 07:54 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds He also warned to the silver community that Silver was going to crash with a live concert last year. he is a very mysterious algotrader . he recently posted that he figured out that on Sep 2021, Burry posted a secret message warning of the crypto market crash we are seeing now. https://twitter.com/_/status/1524213390952050689 |
Anonymous Coward User ID: 81687694 Brazil 05/11/2022 07:55 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds crypto's here for the long run....calm down. Quoting: pud2.0 Bitcoin was $29k last July then to $65k in Nov. Look at the charts. It fluctuates like the tides my sisters and brothers. I've come to the conclusion you're an idiot... +1 Read the white paper written by Satoshi himself. BTC is not Bitcoin since 2016. It's not here for a long, it doesn't exit as currency since LONG AGO. It's just a SCAM. |
580Dandman
User ID: 73335097 United States 05/11/2022 07:56 AM Report Abusive Post Report Copyright Violation | |
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JF Priest
User ID: 83141825 United States 05/11/2022 07:57 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds |
JF Priest
User ID: 83141825 United States 05/11/2022 07:57 AM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 81687694 Brazil 05/11/2022 07:58 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds Keep buying scam coins like BTC because of greed. That's what everybody deserve, lose everything. Quoting: Anonymous Coward 81687694 derp keep believing in magical fairy dust Fed controlled digital money. Do you know what happens if you try to print your own money at home? That's Tether and other stable coins. You get arrested and rot in prison the rest of your life. Tether is the only reason BTC is at $30,000 USD. FAKE MONEY. |
WiscoSteve
Harmless Loveable Patriot User ID: 10028848 United States 05/11/2022 07:59 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds That's freeking awesome!! Do you leverage options for your shorts? On another note, thanks to all that begged me to get out of crypto in January. Thank you all! My Silver I bought with the Crypto just sits there, but at least I have it in hand. Still have my other portfolios, but I am 100% crypto free. That 'fun' money got exchanged for PM's. . Last Edited by WyatteSmith on 05/11/2022 08:00 AM |
Anonymous Coward User ID: 80034609 Spain 05/11/2022 08:01 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds crypto's here for the long run....calm down. Quoting: pud2.0 Bitcoin was $29k last July then to $65k in Nov. Look at the charts. It fluctuates like the tides my sisters and brothers. I've come to the conclusion you're an idiot... thanks for the laugh long or short run coinbase is history and its user funds |
jackfoos
User ID: 75483061 United States 05/11/2022 08:02 AM Report Abusive Post Report Copyright Violation | Re: Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds Funny how a "business" can go bankrupt when the only service they offer is holding on to other people's money. What seems more unlikely is Coinbase and the "courts" working together to protect user's investments and rights. Some people will become filthy rich off of this. |
Anonymous Coward User ID: 81674768 Canada 05/11/2022 08:03 AM Report Abusive Post Report Copyright Violation | |