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98% of their funds are stored offline in a cold wallet. I bet they exhausted their hot wallet supply. https://www.coinbase.com/security?locale=en-US https://ww

98% of their funds are stored offline in a cold wallet. I bet they exhausted their hot wallet supply. https://www.coinbase.com/security?locale=en-US https://www.coinbase.com/security?locale=en-US

jonknee 9y ago
Why would they need the actual coins to allow trading? Only transferring would require access to a wallet.
- function_seven 9y ago
  Seems like selling qualifies as a transfer, no? I think you can still receive and send LTC to other wallets, you can't convert to USD.
  - JosephRedfern 9y ago
    Not if it's internal to coinbase -- can all be marked against an internal ledger, right?
  - electic 9y ago
    Buying and selling does not access a backend wallet. Only when it is transferred outside of the exchange do you need to actually touch the blockchain.
  - zwily 9y ago
    Selling doesn't do an on-chain transaction though. It's only on-chain when you withdraw (or deposit).
    - deleted 9y ago
      [deleted]
  - jonknee 9y ago
    Coinbase is an exchange, you're exchanging with other Coinbase users. Wallets only come into play if you're moving crypto in or out of Coinbase. That's a good thing, wallet transfers can be slow and would really make trading a pain.
- cgb223 9y ago
  I heard somewhere that they keep some of each digital currency on hand to help with price stabilization between when you buy and when transfer is done. So like, you buy not from someone selling, but from Coinbase's stash, who then buys to refill from someone else. No idea how accurate that is though, maybe someone can back me up or correct me here
- zodiac 9y ago
  I think the notice refers to coinbase (where your counterparty is coinbase) not gdax
mdgrech23 9y ago
Maybe, but if they exhausted their hot wallet supply it would make sense to still allow customers to sell.
- deleted 9y ago
  [deleted]
- ryanmonroe 9y ago
  If they only allowed people to sell and not buy they'd probably be accused of market manipulation.
- aqme28 9y ago
  Someone has to buy what they're selling.

98% of their funds are stored offline in a cold wallet. I bet they exhausted their hot wallet supply. https://www.coinbase.com/security?locale=en-US https://www.coinbase.com/security?locale=en-US

jonknee 9y ago

Why would they need the actual coins to allow trading? Only transferring would require access to a wallet.

function_seven 9y ago
Seems like selling qualifies as a transfer, no? I think you can still receive and send LTC to other wallets, you can't convert to USD.
- JosephRedfern 9y ago
  Not if it's internal to coinbase -- can all be marked against an internal ledger, right?
- electic 9y ago
  Buying and selling does not access a backend wallet. Only when it is transferred outside of the exchange do you need to actually touch the blockchain.
- zwily 9y ago
  Selling doesn't do an on-chain transaction though. It's only on-chain when you withdraw (or deposit).
  - deleted 9y ago
    [deleted]
- jonknee 9y ago
  Coinbase is an exchange, you're exchanging with other Coinbase users. Wallets only come into play if you're moving crypto in or out of Coinbase. That's a good thing, wallet transfers can be slow and would really make trading a pain.
cgb223 9y ago
I heard somewhere that they keep some of each digital currency on hand to help with price stabilization between when you buy and when transfer is done. So like, you buy not from someone selling, but from Coinbase's stash, who then buys to refill from someone else. No idea how accurate that is though, maybe someone can back me up or correct me here
zodiac 9y ago
I think the notice refers to coinbase (where your counterparty is coinbase) not gdax

mdgrech23 9y ago

Maybe, but if they exhausted their hot wallet supply it would make sense to still allow customers to sell.

deleted 9y ago
[deleted]
ryanmonroe 9y ago
If they only allowed people to sell and not buy they'd probably be accused of market manipulation.
aqme28 9y ago
Someone has to buy what they're selling.