There’s a run on Coinbase. Hysteria in r/Coinbase, you’d think there’s blood running in the streets.
As I myself can attest, many people are unable to get their USD or coins out of Coinbase. Mysterious error messages happen if you try. (I can put money in and buy though.)
Why? This is speculation but you know it’s true: a classic bank run. All the hysteria and FUD on Reddit is contributing.
It happens every crash like clockwork.
Coinbase simply doesn’t have the cash to cover the run. Like all CEXes including Kraken and Binance, they’re fractionally reserved. The balances shown are not actually on any blockchain or cash vault – until you withdraw or transfer. (In fact it’s very possible that once the last BTC is mined or close to it, that someday CEXes will sell more BTC combined than actually exists.)
There’s nothing inherently *wrong* with that. Nowadays banks can get away without *any* reserves. But the FUD on Reddit is not helping, so blame your fellow Redditors. I’m not saying I like it, but it is the way the world works for now. And in a world economic system that falls apart if constant exponential growth is not maintained, what else do you expect? Don’t like it? Vote for people who promise to change that fundamentally flawed system.
Either way, **Coinbase is not going bankrupt anytime soon, certainly not this crash**. Relax. They’ll be back online. I’m not happy about it either, but take a frickin chill pill already.
Each time this happens, it seems they get better at covering runs. Maybe they increase their reserve policies each time, who knows. Either way, you’ll get your coins. Sucks now, no doubt, but you aren’t going to lose your money. Not this time.
Yah…
Like the billionaires running COIN didn’t think about FUCKING BITCOIN crashing 50%!
“Yeah if crypto goes down 50% we will just go out of business yup yup”
[removed]
At the same time, it’s also a good “not your keys not your coins” lesson. I’m not super worried about the health of Coinbase, but it’s definitely not a dumb idea to get a wallet for all your sitting coins.
World’s going to hell, I tell ya.
Daddy chill
I honestly see this downswing as a good opportunity to start getting into coinbase stock. History had basically shown so far that it likes to follow the crypto market, I have a feeling it’ll make people a ton of money when we get back to a bull run in a few years. Even at 50 it’s tempting me but if it’s gonna drop down in the 20-30 range I’ll be buying a huge bag of coin. They aren’t going anywhere.
Why would Coinbase go under? They have been around for years. Survived the last crypto crashes
Can’t lose your coins from an exchange going bankrupt if they aren’t on an exchange.
Any company is at risk of going bankrupt at any time, it’s never not a risk. The risk varies but it’s always on the table.
Coinbase has $6.1 billion in cash, they’ll be fine for a while
“This is speculation but you know its true” what?? Are you a CB insider? How do you know so factually that everything is just fine A OK?
> they’re fractionally reserved
None of those exchanges are fractionally reserved, it’s a random conspiracy that people here parrot. Unless Coinbase is lying to SEC auditors, investors, and third party auditors it’s not a fractional reserve.
I agree Coinbase is fine, the hysteria is more they publicly made that statement about what would happen in a hypothetical bankruptcy. They have already responded and clarified those remarks also
Not your keys, not your coins.
Not your keys not your coins. Take out your assets from coinbase (and any other exchange) at all costs!
But Coinbase share price tanks.
Fud fud FUD I’m so sick and fucking tired of hearing that term thrown around. Especially when the overall macro environment is absolute shit right now.
That’s what Terra sub said a day before the crash. It’s just fud don’t take the bait etc. Posts like this should make people cautious of the situation they could be in
Exodus yerself 🍻🐕🚀
I don’t hold more than 5k in any CEX, I have seen some scary shit, and I like my crypto cold anyways
You cant lose something you dont have 😉
Sounds like a coinbase problem to me.
The same said Kraken CEO and people were praising the guy for his transparency
*BankruptCoin incoming*
Glad I pulled out yesterday 🙏 no problems at all. Took a day to get the deposit.
Like it or not, the people that win during a bank run are the ones that sell first.
Second. They are huge
I’ll still be keeping my coins in the cold wallet tbh
FUD might tank it
It’s part of a newly required disclosure because of SAB 121 that applies to any custodial wallet.
Actually I believe Kraken is one of the few exchanges that are audited and have the reserves.
Coinbase is likely not going anywhere, but I certainly feel getting your coins off Coinbase are in the community’s best interest, providing it doesn’t all happen at once.
Prolly an over reaction, but this finally made me pull the trigger on a hardware wallet.
The fact that this even needs to be said speaks volumes about how much of a fucking dumpster fire this sub is.
Seems like Bitcoin going down in price would be good for a fractional reserve bank which holds Bitcoin. If clients who bought high want to withdraw Coinbase can purchase at a lower price to cover the withdrawal.
You are completely wrong, it is exactly the opposite.
Companies don’t go bankrupt because of debt , Amazon has billions in long term debt. Companies go bankrupt because of lack of liquidity.
Banks need a regulated amount of reserves. In return, if there is a run on the bank, they can get support from the Federal Reserve. There is no such parachute for Coinbase or any other exchange.
If there is a run on COIN, if people start withdrawing their coins, the only option for COIN is to call in their debts with others. If that fails, COIN is dead.
Bitfinex has a more sleazy sollution: their T&C allows them to give people whatever crypto they have lying around. SO your BTC on Bitfinex are actually Tethers.
Nice try coinbase
We’re in peak hysteria! I’ve been holding off (and it’s been hard not to buy) but for me its time to start buying back in. I can’t see how Bitcoin won’t be higher than current prices in a couple of years