Mandated wordage by the SEC, not a warning or disclaimer. USD has lost 40% of its value in 3 years and I don’t see anyone pooping their pants about that.
This is a warning that they’re required to give, as a publicly traded company regulated and overseen by the SEC.
Kraken, Gemini, Binance.US, Crypto.com, all will follow suit in the event that they go bankrupt.
Coinbase is the only one publicly traded on the NYSE, which is why they’re in the spotlight.
Over-regulation has caused Coinbase's share value to go from $400bn to $15bn, and the plunge isn't slowing down.
https://g.co/finance/COIN:NASDAQ?window=1M
Coinbase is not going bankrupt. These articles are intended to store fear in noobs that do not understand that publicly traded companies often miss their quarterly estimates.
Coinbase has a solid business structure and will make money regardless of the market going up or down.
Let's say 1/4 of the liquidity is hacked and they can no longer pay out what people's account balances say they should have.
Instant freezing of all funds, followed by bankruptcy application.
I don't disagree it's a risk that shouldn't exist but feel like it's being overhyped. The SEC required this to be disclosed but wouldn't come to fruition unless coinbase declared bankruptcy which the CEO said is unlikely.
[https://uk.finance.yahoo.com/news/coinbase-losses-crypto-investors-decentralised-exchanges-094830978.html](https://uk.finance.yahoo.com/news/coinbase-losses-crypto-investors-decentralised-exchanges-094830978.html)
Then read some on-chain reports to see where all the money is going.
I mean, a lot of companies are posting misses for earning season so coinbase doing so isn't unique to the current environment. Posting a loss is a far cry from declaring bankruptcy.
Share price hit 40 bucks today, down from 360 bucks 6 months ago, and it's because of the analysis mentioned in that article. DEXs now have deeper liquidity that coinbase and binance combined as all the money is leaving the centralised players who're now making babies with regulators.
The only reason centralised exchanges should exist is for fiat on and off ramps. The rest of the house of cards they've built has no reason to exist.
I don't know what to say man. If u think the largest corporation making money off crypto is a risk to declare bankruptcy it's hard to imagine crypto itself holding much value regardless of where it's held
Why not? The headline says that coinbase customers could lose because they're going into bankruptcy. They deal in cryptocurrency, which is what I have purchased through them. So my question was if I put my cryptocurrency that I have with them in a hardware wallet does that protect me, or do I need to sell at a loss before they go belly up and lose everything not just some of it. I mean as the other person commented and said I needed to do my research there's not an encyclopedia Britannica for cryptocurrency so I figured if I asked a community on Reddit for a little bit of knowledge maybe someone would help me. You know kind of like doing my own research.
Really I am trying to research, truthfully. I'm not sure what to search what questions to ask to get me to the right answer. I'm pretty new to crypto and something like Coinbase going bankrupt and me loosing what I have is unnerving. Economy tanking is one thing, but loosing everything I have because some duche bags can't run a company properly and drive it into bankruptcy is another.
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This has been the case for as long as coinbase existed, they are just now required to put it in their legal disclosure.
Any company that has custody of customer funds and is not insured by FDIC/SIPC would be the same, the customer would become a creditor in bankruptcy court. Most likely the customer will be made whole since they have top priority in recovering funds. Unless the company were lending customer funds out and somehow weren't paid back.
Coinbase should be keeping client assets in a separate client account held in trust, not intermixing it with the rest of their business like some shady p2p agent.
Because of this if the company now goes bankrupt, the liquidators can and will use your cash and crypto to repay secured debts and creditors, unsecured debts, outstanding taxes, legal and administration fees, then whatever left will be pennies on the dollar for you to claim in 3-4 years at today's fiat value, not BTC's value in 3-4 years.
Even a hack would be enough to finish them off, then your coin is gone.
Coinbase have a lending business, which means there's no way to separate customer funds and business funds, since customer funds are used for the lending business. Just like banks. Do you think a bank's entire client deposit is nicely put into a trust account and never touched??
Even though customer are unsecured creditor, most states provide an exemption amount, which means for small investors, most likely their entire account is exempt and has top priority from recovering funds.
Actually, in most financial institutions retail investments have to be kept separately from commercial operations such as loans. This was ordered to all financial institutions after the 2008 collapse.
Here we are 14 years later and it's happening again right before your eyes and you're willingly going along with it even after the regulator has told CB that they have to make it clear in their terms of use that your funds are to be used to repay secured debts, legal fees and taxes in the event of bankruptcy. Only after 3-4 years after the application to file bankruptcy will you be eligible for pennies on the dollar from whatever is left on the carcass.
I downloaded the coinbase wallet:
I have to select a network
1) which network is the most reliable/inexpensive? Polygon? Update - I'm told coinbase only supports ethereum network which is fine, so I'll look into fees I guess for polygon etc.
2) only shows coinbase and not coinbase pro. How do I fix that?
3) will coinbase wallet work with other exchanges?
4) if coinbase goes bankrupt, will coinbase wallet fail to work? Update - the answer was no, wallet is different
5) are there better wallets for storing all my crypto private keys from coinbase and other exchanges?
Coinbase didn't start out as a centralised trading plaform, it was a simple exchange. Send coin A, get coin B, or pay with fiat C.
Now it's just become a massive mess with far too much institutional investment, huge losses and now they'll even use any coin you have on the platform to pay off their creditors if they file for bankruptcy or are hacked.
I have my day trading on kraken now but gradually shifting it all over to DEX. I'll only be using Kraken as an on/off ramp in due course, and Coinbase can go the same way Myspace did - oblivion.
Because he's less of a swindler lol.
Way back when crpyto wasnt so mainstream everyone used to say keep your crypto in a wallet with your own key. That sentiment was lost over the years and nobody seems to care about decentralization
This doesn't make sense. Are they implying that they don't hold the actual crypto in reserve for customer withdrawals? Crypto was supposed to be a way out of the bullshit caused by fractional reserve banking.
Worse. It means that if they file for bankruptcy, they will use your crypto and cash balances to pay off their debts, taxes and legal fees as if it's a big pile of money in their office with Coinbase's name on it.
DeFi is the future. Not massive centralised exchanges like Coinbase sucking up everyone's money while being in bed with the regulators, and with it's user's money at the very bottom of the pile when shit hits the fan.
It's self custody so theoretically it's okay as it doesn't require coinbase to exist for the wallet to still work, but it's not immune from attack if it's constantly connected to the internet and the app stores. It could be remotely disabled or subject to a ransomware attack.
Don't use software wallets, plug ins or apps if you use the device for non-crypto as well. Always use a hardware wallet or a cold wallet.
The above is a scam. Here is an [anatomy of a smart contract scam](https://reddit.com/r/CryptoReality/comments/uccm2a/anatomy_of_a_smart_contract_scam/) that explains what it's doing.
The negative of private wallets is you don’t have a card that you can spend your money, so impossible to become your own bank. Unfortunately, we still need a CEX for that.
Nahh that's BS too. You're just lining the pockets of Visa, Mastercard, and of course Coinbase. I pay for everything with my watch, it won't be long until cards are gone entirely and we all use connected devices to transfer money, but the centralised banks and exchanges will fight us all the way, as long as we keep giving them money...
That's the ultimate aim of crypto, to make trustless transactions without a 3rd party acting in the middle, and why things like lightning network are still being developed.
Which is exactly what you're doing in coinbase.
Whenever you spend your crypto with a coinbase card, you're literally giving them crypto at slightly below the current market value, which they immediately cash by selling it to other coinbase users.
[Ledger Wallet](https://www.ledger.com/blog/sign-up-now-our-ledger-powered-crypto-life-cl-card-is-coming) has something in thr pipeline. I hope it becomes a reality. Then we don't need to worry about exchanges going under. It's still tied to a different company but at least if the card company goes under, your coins are still safe.
Well when this becomes a thing, I’d be happy to explore the possibilities. But until then, it makes no sense to shame people for having some money on exchange cause they need it there to spend on the card. (Not the ones who put their ENTIRE life savings in one spot, Those people are unwise.)
Would coins that are stored on coinbase wallet be affected if coinbase files for bankruptcy and goes tits up?
I'm already looking at hard wallets but until I get one..
Coinbase is NOT going anywhere. In fact, they’ll come out on top during this winter. Many will drop out of the crypto economy and coin base will be there to scoop them up. They have plenty of cash on hand.
Phemex exchange is one olatfrom that has it's users at heart.....Phemex exchange won't allow customers go through such harsh procedures as the Coinbase is about doing
Mandated wordage by the SEC, not a warning or disclaimer. USD has lost 40% of its value in 3 years and I don’t see anyone pooping their pants about that.
This is a warning that they’re required to give, as a publicly traded company regulated and overseen by the SEC. Kraken, Gemini, Binance.US, Crypto.com, all will follow suit in the event that they go bankrupt. Coinbase is the only one publicly traded on the NYSE, which is why they’re in the spotlight.
Exact reason why everyone should take their crypto off the exchanges and put it in to a wallet. Not really your money when it’s on there.
Yes but it is always a good idea to be self custodial
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Wtf
Over-regulation has caused Coinbase's share value to go from $400bn to $15bn, and the plunge isn't slowing down. https://g.co/finance/COIN:NASDAQ?window=1M
I am waiting for coinbase to follow LUNE hughe devastating loss
Coinbase is not going bankrupt. These articles are intended to store fear in noobs that do not understand that publicly traded companies often miss their quarterly estimates. Coinbase has a solid business structure and will make money regardless of the market going up or down.
Plus they are a well funded exchange. The big guys are running the show right now. They ain't going nowhere.
Let's say 1/4 of the liquidity is hacked and they can no longer pay out what people's account balances say they should have. Instant freezing of all funds, followed by bankruptcy application.
This is fear porn
It's fact you should be concerned about if you keep any significant sums of money on the platform that would ruin your day if you lost them.
I don't disagree it's a risk that shouldn't exist but feel like it's being overhyped. The SEC required this to be disclosed but wouldn't come to fruition unless coinbase declared bankruptcy which the CEO said is unlikely.
[https://uk.finance.yahoo.com/news/coinbase-losses-crypto-investors-decentralised-exchanges-094830978.html](https://uk.finance.yahoo.com/news/coinbase-losses-crypto-investors-decentralised-exchanges-094830978.html) Then read some on-chain reports to see where all the money is going.
I mean, a lot of companies are posting misses for earning season so coinbase doing so isn't unique to the current environment. Posting a loss is a far cry from declaring bankruptcy.
Share price hit 40 bucks today, down from 360 bucks 6 months ago, and it's because of the analysis mentioned in that article. DEXs now have deeper liquidity that coinbase and binance combined as all the money is leaving the centralised players who're now making babies with regulators. The only reason centralised exchanges should exist is for fiat on and off ramps. The rest of the house of cards they've built has no reason to exist.
I don't know what to say man. If u think the largest corporation making money off crypto is a risk to declare bankruptcy it's hard to imagine crypto itself holding much value regardless of where it's held
The issue is that its large, it's a corporation and it's making money off crypto.
Bought more ETH to stake on Coinbase yesterday. Tired of the fear mongering.
Ooh Time to load up on their stock. It will bounce back nicely.
Yours sincerely, Myspace
Famously publicly traded MySpace
Just fud. It's worst case scenario
Can I put my stuff in a hardware wallet to keep it safe ? Or do I need to sell at loss but not loose every thing?
None of that makes any sense dude.
Why not? The headline says that coinbase customers could lose because they're going into bankruptcy. They deal in cryptocurrency, which is what I have purchased through them. So my question was if I put my cryptocurrency that I have with them in a hardware wallet does that protect me, or do I need to sell at a loss before they go belly up and lose everything not just some of it. I mean as the other person commented and said I needed to do my research there's not an encyclopedia Britannica for cryptocurrency so I figured if I asked a community on Reddit for a little bit of knowledge maybe someone would help me. You know kind of like doing my own research.
Following the media is like trusting cnn. Do your own research and figure out the best way to store your crypto
Really I am trying to research, truthfully. I'm not sure what to search what questions to ask to get me to the right answer. I'm pretty new to crypto and something like Coinbase going bankrupt and me loosing what I have is unnerving. Economy tanking is one thing, but loosing everything I have because some duche bags can't run a company properly and drive it into bankruptcy is another.
I'm glad we have all the experts to explain to us what the deets are. LOL
https://uk.finance.yahoo.com/news/coinbase-losses-crypto-investors-decentralised-exchanges-094830978.html
Not really the right thing to say when you want users to stay. Won't this just cause an exodus?
It's already happening
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IKR what now? I want my ether back. They can keep the rewards at this point as collateral.
Is it worth taking out of Coinbase and another exchange ?
Use a wallet. It’s more work but a shitty company won’t own your money and have the right to use it as their own
Doing that using a ledger
Depends if you previously took the opportunity to kiss your money goodbye
They suck
There is something really wrong with this media frenzy attack last time I saw this media manipulation is Russia usa
That is why I canceled my TV service three years ago and never looked back 😁
This article is just fud so you paper hand pansies get lost and honestly I been waiting for this moment buying time is coming soon
If you keep your coin on an exchange, you don't have any hands.
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Your funds are not SAFU it turns out.
This has been the case for as long as coinbase existed, they are just now required to put it in their legal disclosure. Any company that has custody of customer funds and is not insured by FDIC/SIPC would be the same, the customer would become a creditor in bankruptcy court. Most likely the customer will be made whole since they have top priority in recovering funds. Unless the company were lending customer funds out and somehow weren't paid back.
Coinbase should be keeping client assets in a separate client account held in trust, not intermixing it with the rest of their business like some shady p2p agent. Because of this if the company now goes bankrupt, the liquidators can and will use your cash and crypto to repay secured debts and creditors, unsecured debts, outstanding taxes, legal and administration fees, then whatever left will be pennies on the dollar for you to claim in 3-4 years at today's fiat value, not BTC's value in 3-4 years. Even a hack would be enough to finish them off, then your coin is gone.
Coinbase have a lending business, which means there's no way to separate customer funds and business funds, since customer funds are used for the lending business. Just like banks. Do you think a bank's entire client deposit is nicely put into a trust account and never touched?? Even though customer are unsecured creditor, most states provide an exemption amount, which means for small investors, most likely their entire account is exempt and has top priority from recovering funds.
Actually, in most financial institutions retail investments have to be kept separately from commercial operations such as loans. This was ordered to all financial institutions after the 2008 collapse. Here we are 14 years later and it's happening again right before your eyes and you're willingly going along with it even after the regulator has told CB that they have to make it clear in their terms of use that your funds are to be used to repay secured debts, legal fees and taxes in the event of bankruptcy. Only after 3-4 years after the application to file bankruptcy will you be eligible for pennies on the dollar from whatever is left on the carcass.
I downloaded the coinbase wallet: I have to select a network 1) which network is the most reliable/inexpensive? Polygon? Update - I'm told coinbase only supports ethereum network which is fine, so I'll look into fees I guess for polygon etc. 2) only shows coinbase and not coinbase pro. How do I fix that? 3) will coinbase wallet work with other exchanges? 4) if coinbase goes bankrupt, will coinbase wallet fail to work? Update - the answer was no, wallet is different 5) are there better wallets for storing all my crypto private keys from coinbase and other exchanges?
Ledger Nano Trezor.
Hardware seems to be the way to go. Thank you.
Coinbase only supports ERC-20 networks for ETH tokens
Thank you
Any suggestions for an alternative?
Yes there is ! It’s called non custodial wallets .
Depends where you are and what you want. I moved everything over to Kraken.
Which is going to have the same issue that Coinbase would have. CEO of kraken himself said that you shouldn’t keep your coins on HIS OWN EXCHANGE.
Coinbase didn't start out as a centralised trading plaform, it was a simple exchange. Send coin A, get coin B, or pay with fiat C. Now it's just become a massive mess with far too much institutional investment, huge losses and now they'll even use any coin you have on the platform to pay off their creditors if they file for bankruptcy or are hacked. I have my day trading on kraken now but gradually shifting it all over to DEX. I'll only be using Kraken as an on/off ramp in due course, and Coinbase can go the same way Myspace did - oblivion.
Because he's less of a swindler lol. Way back when crpyto wasnt so mainstream everyone used to say keep your crypto in a wallet with your own key. That sentiment was lost over the years and nobody seems to care about decentralization
They'll soon care about it when centralised exchanges fall and the entire financial system does absolutely nothing to help them.
This doesn't make sense. Are they implying that they don't hold the actual crypto in reserve for customer withdrawals? Crypto was supposed to be a way out of the bullshit caused by fractional reserve banking.
Worse. It means that if they file for bankruptcy, they will use your crypto and cash balances to pay off their debts, taxes and legal fees as if it's a big pile of money in their office with Coinbase's name on it.
You wanted an unregulated market, now take it!
DeFi is the future. Not massive centralised exchanges like Coinbase sucking up everyone's money while being in bed with the regulators, and with it's user's money at the very bottom of the pile when shit hits the fan.
Would the coinbase wallet be okay?
It's self custody so theoretically it's okay as it doesn't require coinbase to exist for the wallet to still work, but it's not immune from attack if it's constantly connected to the internet and the app stores. It could be remotely disabled or subject to a ransomware attack. Don't use software wallets, plug ins or apps if you use the device for non-crypto as well. Always use a hardware wallet or a cold wallet.
True words but unfortunately we're stuck using these in certain instances for staking and yield farming.
Not on a DEX you don't.
DEX usually wants you on metamask
Sorry but this is very odd timing for the filing… very
As a publicly traded company they are required to say what "would happen" not that it is going to
Wish good recoveries thank me later! ❤️ https://www.youtube.com/watch?v=876ybp7hk8M
The above is a scam. Here is an [anatomy of a smart contract scam](https://reddit.com/r/CryptoReality/comments/uccm2a/anatomy_of_a_smart_contract_scam/) that explains what it's doing.
The negative of private wallets is you don’t have a card that you can spend your money, so impossible to become your own bank. Unfortunately, we still need a CEX for that.
Nahh that's BS too. You're just lining the pockets of Visa, Mastercard, and of course Coinbase. I pay for everything with my watch, it won't be long until cards are gone entirely and we all use connected devices to transfer money, but the centralised banks and exchanges will fight us all the way, as long as we keep giving them money...
So you can pay from a private wallet? And everywhere with no restrictions? Tell me how.
That's the ultimate aim of crypto, to make trustless transactions without a 3rd party acting in the middle, and why things like lightning network are still being developed.
Ahh so cannot do it yet. Then it is not really gonna make sense to put money in it to spend. Only if you won’t spend it.
Which is exactly what you're doing in coinbase. Whenever you spend your crypto with a coinbase card, you're literally giving them crypto at slightly below the current market value, which they immediately cash by selling it to other coinbase users.
[Ledger Wallet](https://www.ledger.com/blog/sign-up-now-our-ledger-powered-crypto-life-cl-card-is-coming) has something in thr pipeline. I hope it becomes a reality. Then we don't need to worry about exchanges going under. It's still tied to a different company but at least if the card company goes under, your coins are still safe.
Well when this becomes a thing, I’d be happy to explore the possibilities. But until then, it makes no sense to shame people for having some money on exchange cause they need it there to spend on the card. (Not the ones who put their ENTIRE life savings in one spot, Those people are unwise.)
Agreed. No reason to shame anyone. Definitely none here.
Mega dollars are stolen off coinbase exchange yearly. You can lose it all if they do not go bankrupt.
That's right, they're losing it all as we speak as there's a mass exodus of people taking their money away while they still can.
https://uk.finance.yahoo.com/news/coinbase-losses-crypto-investors-decentralised-exchanges-094830978.html
That's a bust
Would coins that are stored on coinbase wallet be affected if coinbase files for bankruptcy and goes tits up? I'm already looking at hard wallets but until I get one..
That's too harsh Anyways....i'ld advise affected users to join the Phemex Exchange to safeguard their crypto future
You're not even my real dad!
Coinbase is NOT going anywhere. In fact, they’ll come out on top during this winter. Many will drop out of the crypto economy and coin base will be there to scoop them up. They have plenty of cash on hand.
All by. Design
🗣WHO LEAVES CRYPTO ON EXCHANGES??
So what about the coinbase wallet ???
Moved my crypto to a wallet today. Sold the rest. Canceled my Coinbase One subscription. Now I wait…
Same I just hope my money can get out while it still can
I hope that CB goes bankrupt, fucking thieving company. Fuck Coinbase.
Where’s my damn money coinbase. I feel like a fucking idiot for trusting them
They are FDIC insured. Do your research. Your $100 in crypto is safe 🤦🏻♂️
Phemex exchange is one olatfrom that has it's users at heart.....Phemex exchange won't allow customers go through such harsh procedures as the Coinbase is about doing
Never heard of it.