Coinbase warns users could lose their crypto holdings if the company goes bankrupt

[Martin Everson]

JackAlabama said:
What was with the haircut in cyprus? What is happening right now?
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You mean in 2013 in Cyprus? EU BRRD and ring fencing rules came in 2014 (Directive 2014/59/EU) in response to that 😉.

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[JackAlabama]

Martin Everson said:
You mean in 2013 in Cyprus? EU BRRD and ring fencing rules came in 2014 (Directive 2014/59/EU) in response to that 😉.
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Nah I primarily meant what is happening in 2022 😉
This is more to worry about than 2013.

 

[Martin Everson]

Bottom line is I would trust Wirecard Bank accounting before I trust any crypto companies accounting....lol. Protect yourself and be wise about where you hold stuff.

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[JackAlabama]

Martin Everson said:
Bottom line is I would trust Wirecard Bank accounting before I trust any crypto companies accounting....lol. Protect yourself and be wise about where you hold stuff.
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Bottom line is clear. In this low trust world we are in, nothing beats self-custody. We perfectly agree on this.

I would not trust the old regulated banking stuff at all. Coinbase is as "good" (bad? 😉 ) as your average bank.
Since 2008 this is very clear and it is not getting better as they add rules to fix the old problem but by doing so it opens up 3 new threat vectors which will come due just a short time ahead.

 

[JosephLL]

This warning has nothing to do with custody problem, but with usdc peg. Cold wallet won't help you if the peg breaks and you end up with a bag of stableshitcoins. Among them usdc is the worst kind. Even if it lives, it'll be just a matter of time when compliance kicks in and amounts start to freeze on the "blockchain".

 

[WazyColen]

JackAlabama said:
Суть ясна. В этом мире низкого доверия, в котором мы находимся, ничто не сравнится с самоконтролем. Мы полностью согласны с этим.

Я бы вообще не стал доверять старому регулируемому банковскому делу. Coinbase такой же «хороший» (плохой? 😉 ), как и ваш средний банк.
С 2008 года это очень ясно, и ситуация не становится лучше, поскольку они добавляют правила для решения старой проблемы, но при этом открываются 3 новых вектора угроз, которые появятся совсем скоро.
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I agree with you!

 

[Martin Everson]

Coinbase Customers Sue Over Stablecoin That's ”˜Anything But'​

https://www.msn.com/en-us/money/mar...-was-e2-80-98anything-but-e2-80-99/ar-AAXdB77

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JackAlabama]

Martin Everson said:

Coinbase Customers Sue Over Stablecoin That's ”˜Anything But'​

https://www.msn.com/en-us/money/mar...-was-e2-80-98anything-but-e2-80-99/ar-AAXdB77
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And? They f over their clients? That is daily business.
Welcome to banking right here, you know how this is being played 😉 (margin calls by banks etc.)

Lehman brothers papers, Archegos and Greensil funds 😉 all top notch products by the saints of banking.

The bring up the point again. They are as good as any bank, not better, not worse (overall pretty bad as are the banks as well)

 

[backpacker]

backpacker said:
Let's face it: If Coinbase goes bust, the entire crypto market is finished for at least a decade.
The few remaining enthusiast will not be able to stop a complete market collapse.

However, before Coinbase goes down the drain we might see some of these obscure Crypto Lending Platforms with their unsustainably high interest rates going out of business.

Most market participants are experiencing their first major market crash and will soon learn about the meaning of "domino effect".
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"Obscure crypto lending platforms": -> Crypto firm Celsius pauses all transfers, withdrawals as markets tumble
🙄
People never learn from history: 20 years ago it was dot.com, now it's crypto. They will all fall like dominoes.

 

[JohnLocke]

Alot of turmoil in the water at the moment. Just wait a few days to see it all to calm down.

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[troubled soul]

backpacker said:
"Obscure crypto lending platforms": -> Crypto firm Celsius pauses all transfers, withdrawals as markets tumble
🙄
People never learn from history: 20 years ago it was dot.com, now it's crypto. They will all fall like dominoes.
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Ageless Wissom
"not your keys not your crypto"

 

[JosephLL]

There's too much completely clueless people on history and political economy in crypto, unfortunately with coding skills, to ever understand what are the conditions when lending actually works. For playing zero sum games and stealing from one another it doesn't. I guess we're in the phase of "wisdom of the crowds" finding one. .. It's going to be a long and painful journey with the clueless players having coding skills ...

 

[troubled soul]

Use crypto but don't invest in it: Edward Snowden

 

[boomy]

backpacker said:
People never learn from history: 20 years ago it was dot.com, now it's crypto. They will all fall like dominoes.
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you believe so?

 

[khinkali]

backpacker said:
People never learn from history: 20 years ago it was dot.com, now it's crypto. They will all fall like dominoes.
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I'm not convinced that all of the dot.com boom companies fell. Some seem to have done extraordinarily well for their shareholders.

Out of the approximately ten thousand tokens listed on CMC / CG, most will fail. Those that don't could get very interesting.

 

[Martin Everson]

khinkali said:
Out of the approximately ten thousand tokens listed on CMC / CG, most will fail. Those that don't could get very interesting.
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You think Dogecoin and Shiba Inu will fail?

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[khinkali]

Martin Everson said:
You think Dogecoin and Shiba Inu will fail?
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Currently useful with a fan base but not otherwise not well differentiated? I think they'll exist but shrink within the crypto space.

I don't tend to hold these kinds of tokens for more than a few hours.

 

[boomy]

khinkali said:
Out of the approximately ten thousand tokens listed on CMC / CG, most will fail. Those that don't could get very interesting.
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they will fail regardless how the market looks like. There are too many useless, fake and scam coins around. One day the system will have to clean the list.