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Except that 99.9% of people will buy "stable" coins on Coinbase. Not your keys, not your crypto. If Coinbase gets leveraged or goes the way of SFB, you have lit
by snarf21 4y ago
Except that 99.9% of people will buy "stable" coins on Coinbase. Not your keys, not your crypto. If Coinbase gets leveraged or goes the way of SFB, you have literally the same non-immunity as a bank run except you also don't get FDIC backstops.
- brvsft 4y agoSFB? You mean SVB? SBF?
- snarf21 4y agoSorry, I meant SBF but transposed.
- spir 4y agoYou're right, stablecoins held custodially in an entity could be subject to similar contagion. Yet, non-custodial holding is becoming much easier and safer. Crucially, wallets are improving a lot, and a spectrum of custodial options is developing, with rich tradeoffs in eg. safety and self-sovereignty. For example https://www.coinbase.com/blog/how-smart-cryptography-makes-coinbase-more-secure https://www.coinbase.com/blog/how-smart-cryptography-makes-c...