COINBASE warns bankruptcy could wipe out user funds...

[bornfree2]

Hidden away in Coinbase Global’s disappointing first-quarter earnings report—in which 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.

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.

https://fortune.com/2022/05/11/coinb...arnings-stock/

It never ceases to amaze me how clever humans are in inventing units of exchange, getting others store their hard earned wealth in them, then transfering all that wealth into their own pockets.

Bankruptcy or not, crypto is not going anywhere. Its destined and was designed to be the world's local currency destroyer and put all of humanity on a digital slave blockchain. No mark, no wallet, no commerce participation.

[justbroke]

Bankruptcy or not, crypto is not going anywhere. Its destined and was designed to be the world's local currency destroyer and put all of humanity on a digital slave blockchain. No mark, no wallet, no commerce participation.

Not going anywhere, but not immune to business conditions including, but not limited to, bankruptcy, corporate theft, pyramiding schemes, and other malfeasance.

[flashoflight]

Bankruptcy or not, crypto is not going anywhere. Its destined and was designed to be the world's local currency destroyer and put all of humanity on a digital slave blockchain. No mark, no wallet, no commerce participation.

I'm far less enthusiastic than you are about crypto. Crypto and NFTs will soon be a distant memory full of bagholders. All that will be left is central bank digital currency even with all of the many potential pitfalls of holding CBDC.

Don't forget about the Coinbase insider trading with purchases of sh*tcoins prior to public disclosure that it will be listed on Coinbase. This company is as shady as heck. Remember, not your keys, not your coins. You'll find that out when your Coinbase coins are part of the bankruptcy estate and you're one of the lowly unsecured creditors. Doesn't matter anyway because your underlying ETH and BTC will be worthless.

Crypto looks like the Wild Wild West full of Ponzi schemes (Terra/Luna crash), pump and dump schemes, coin theft by scammers tricking coin holders, broken promises of eth 2.0 coming soon, etc.

[bornfree2]

The smart move right now would be for facebook to announce the 'Great Crypto Migration' and have people trade their ever vanishing wealth into facebook bucks. Yes i know they try to rebrand as 'meta' so we can forget about facebook, but its facebook.

They have had a crypto platform for some time and would be the only ones that have an installed user base that is already trading and just needs a reason to transition to facebook coin.

Or insert 'Elon Musk' for offering dogecoin bailouts. So people can have their ballyhoo dreams backed by the grand wizard of Oz himself.

There are an infinite amount of ways humans can scam each other. And here I am trying to figure out how to retool myself to add value to an economy. i should have just created my own coin or nft. duh!