Right, same thing definitely can't happen to Coinbase, because Coinbase is certainly a much better blue-chip company in the economy compared to FTX/SoftBank

not fuking srs

Its a good point. In addition to me not understanding how your chitcoins can just be erased if a company goes bankrupt, if all of the exchanges go down, what is the fukken point in trying to salvage this chit?

If you're a trader it sucks, but even if you can't cash out it's like owning a piece of a network itself. Think if you owned a section of high speed internet cable and got residuals...See post 20

FTX was crypto Lehman.

He has somewhat of a point though. At least Coinbase is a publicly traded company and has financials that they have to report and that are scrutinized. There's a lot of **** that FTX was doing that they wouldn't get away with.

They (FTX) held only $900mil in liquid assets ($470mil being robin hood stock, lmao) vs $9 bil liabilities. Their biggest asset was $2.2b of a token called SRM (and this tokens market cap was only $88mil, yep you heard that right) because prior to the liquidation, FTT (their own token) was their largest holding, so they were lending money out to people backed by their own trash. No bitcoin assets on the balance sheet, but $1.4b of bitcoin liabilties?... among other ****

Definitely not "recommending" coinbase or anything, they could easily get ****ed and halt withdrawals too, I wouldn't trust any of the big exchanges, but they are going to be slightly more secure than FTX.

If they go bankrupt they go into receivership and debt owners get first priority for all their assets. The fdic will insure up to 250k of your USD held in coinbase...not any crypto. It will be a long and messy ordeal to get back any crypto when all the creditors smash their arseholes raw to extract as much of their entitled money back before all equity owners and retail investors. Takes years. By then your crypto could be worthless.

How has nobody started a Misc Coin yet

Question about Cold wallets,


What happens if you are in a big city, and someone sets off a large EMP?

Never hold crypto on an exchange ever crew checking in. Lots of wallets out there like Trust Wallet. At least store it there. I also have a Ledger Nano S.

I'll do what I can in my power so I never get cucked from a exchange.

Crypto, you never know.

Well first off, if we have an EMP, money in any form will the the last of our worries. But for eventual recovery you can still access with a compatible active device with seed phrases. You can even set up a wallet on a phone and then uninstall the wallet and restore it as needed. Also you can buy a faraday bag to store your device in...

You have some tokens, but a lot of of other people have tokens, and Coinbase doesn't have enough money to make everyone whole.

Imagine if McDonald's started their own token, redeemable for 1 Big Mac at their restaurant, but they lent out 10 tokens for every Big Mac in their freezer. If financial shenanigans go down and everyone tries to cash out simultaneously, 9/10 of y'all motherfukkers aren't eating a Big Mac for lunch. You still own that token, but Mickey D's has nothing to redeem it for.

Who gets that 1 sandwich is settled IRL by bankruptcy laws. I'm no bankruptcy lawyer, but IIRC depositors are very high in the pecking order. So in the case of FTX, where they have like 10x more liabilties than assets, depositors are probably going to get pennies on the dollar back and everyone else is going to get shafted with a 100% total loss. Don't know about Coinbase's situation, but I'd imagine they are leveraged af as well.

Most banks are highly leveraged, cause fractional-reserve lending is ghey as fuk. But at least with fiat money, the federal government guarantees that depositors will be made whole, regardless of how much the bank itself can pay. That's not the case with crypto exchanges.

Honestly, the whole concept of a crypto bank is fukking retarded. Isn't decentralization the whole point?

Your fine as long as you have your "keys" (phrase), I believe.