Coinbase has all funds to cover user deposits?
Coinbase has all funds to cover user deposits. If you prefer to cntrl you own private keys, see our multisig vault https://t.co/Dt1EdiohpG
— Brian Armstrong (@brian_armstrong) August 1, 2016
Coinbase are some of the best, brightest, and most trustworthy people in the industry. They are literally brainiac Harvard and Stanford grads and have VC funding from some of the most legit names in Palo Alto that would never allow something like insolvency to happen under their noses. We should all be greatful they are in our space of fintech and not some place else doing amazing things.
The accusations based on little evidence are really unfortunate but part of running a business. I remember a few months back some attacks were similarly made on Uphold. Not sure what ever happened to that but it seems they are still here, still run by a billionaire with tons of funding.
I try not to post often on this sub, but this one I felt I had to speak up.
Given the demand for ETC and the trading in both bitcoin, ether and Ethereum Classic, it really appears that someone is buying Ethereum Classic with the other two. This trend is part of the cause for speculation that Coinbase or another exchange is doing this because they’re going to have to offer their customers ETC. For instance, if GDAX doesn’t have any ETC, they will have to buy it on the open market – and with what? They’re looking at selling Dollars, Bitcoins and Ether to do so. This is the basis for the rumor and people are looking at the volume and assuming that’s what is happening.
This whole hard fork mess in Ethereum has now bled over to Bitcoin. Even if the rumors are untrue, it’s another example of why the arrogance of the Ethereum community has affected people outside their community.
I don’t think you understand the service Coinbase provide.
When one sends Bitcoin to Coinbase they are giving complete control of their Bitcoin to Coinbase. They no longer own the Bitcoin. Coinbase can do with it as they wish, including moving it around within their own internal wallets if they want to. Most of it I expect is kept in cold storage.
All the customer gets back is an IOU to repay the equivalent amount upon request. The customer cannot expect to be given the private keys to Coinbase’s wallets.
Coinbase do offer a ‘vault’ service which I believe lets the customer manage the private keys – but really if one wants to have the private keys to their wallets, they don’t need Coinbase or any third party service at all.
The problem is Coinbase uses the term ‘Wallet’. A wallet can mean anything. Blockchain.info is a third party hosted wallet where you can access the private key. Who knows what kind of service Coinbase provides just by registering. From the little documentation they have you think their wallet would have the same capabilities as blockchain.info. Then you are screwed when you need the private key.