4 ms·

Xapo's vault comes with insurance: https://xapo.com/#aboutVault https://xapo.com/#aboutVault

by Rauchg 12y ago

sillysaurus3 12y ago
I heard that too, but unfortunately it looks like Xapo seems to be misrepresenting themselves to consumers: https://news.ycombinator.com/item?id=7510403 https://news.ycombinator.com/item?id=7510403 http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_does_not_have_the_insurance_they_claim/ http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_doe... The top comment from that Reddit thread shows a pretty compelling discrepancy that probably indicates there's no way Xapo is actually able to provide the guarantees it's claiming: http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_does_not_have_the_insurance_they_claim/cg2awjt http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_doe... This is the sucky nature of Bitcoin circa 2014: before you trust anybody, research every single claim they make, else lose your coins if things go badly for them. Someone who works for Xapo posted a less-than-compelling counter-reply: http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_does_not_have_the_insurance_they_claim/cg2dmmj http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_doe... ... and it strikes me as very foolish to trust that claim at face value: The amount of reserves required to be fully-insured involves understanding specific methods of cold storage then applying actuarial methods for estimating losses, as well as other calculations. That's the language of someone who can't outright say "we won't be able to survive catastrophic losses, and in that circumstance, you'll lose your money." Something like an insurance guarantee needs to have a clear example of how payouts to consumers actually happen in the event of fraud. What can consumers expect? Will they pay market rate at the time of fraud, or will they pay current market rate? How long will it take to receive payment? Will they pay in dollars or coins? How can consumers really trust that you'll be able to cover the loss of n_users * price_per_coin?

Xapo's vault comes with insurance: https://xapo.com/#aboutVault https://xapo.com/#aboutVault

by Rauchg 12y ago

Xapo's vault comes with insurance: https://xapo.com/#aboutVault https://xapo.com/#aboutVault

I heard that too, but unfortunately it looks like Xapo seems to be misrepresenting themselves to consumers: https://news.ycombinator.com/item?id=7510403 https://news.ycombinator.com/item?id=7510403 http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_does_not_have_the_insurance_they_claim/ http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_doe... The top comment from that Reddit thread shows a pretty compelling discrepancy that probably indicates there's no way Xapo is actually able to provide the guarantees it's claiming: http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_does_not_have_the_insurance_they_claim/cg2awjt http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_doe... This is the sucky nature of Bitcoin circa 2014: before you trust anybody, research every single claim they make, else lose your coins if things go badly for them. Someone who works for Xapo posted a less-than-compelling counter-reply: http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_does_not_have_the_insurance_they_claim/cg2dmmj http://www.reddit.com/r/Bitcoin/comments/20dolm/psa_xapo_doe... ... and it strikes me as very foolish to trust that claim at face value: The amount of reserves required to be fully-insured involves understanding specific methods of cold storage then applying actuarial methods for estimating losses, as well as other calculations. That's the language of someone who can't outright say "we won't be able to survive catastrophic losses, and in that circumstance, you'll lose your money." Something like an insurance guarantee needs to have a clear example of how payouts to consumers actually happen in the event of fraud. What can consumers expect? Will they pay market rate at the time of fraud, or will they pay current market rate? How long will it take to receive payment? Will they pay in dollars or coins? How can consumers really trust that you'll be able to cover the loss of n_users * price_per_coin?