Coinbase Global Inc (COIN)

[shajandr]

“They Are All Equally Risky”

The bigger effect here is not so much the immediate financial consequences. It’s the loss of confidence this is going to instill in people, especially once they realize that nobody’s going to be able to save it.

Are there other worrisome spots with other major crypto players that you have an eye on right now?

I would not have my money in any of them. Legally speaking, if you read, for example, Coinbase’s own disclosures, even they admit that if they go bankrupt, any assets on that platform are their assets. Which is different from any other company. Even if they aren’t holding them forever, if they go bankrupt, there’s a very good chance your assets are locked up for years in a court battle. Why would you want to take that risk? You should not hold any of your assets on any of these centralized exchanges, and you shouldn’t be holding any of these default protocols, either, because basically, those are just piggy banks for these guys to raid. Then the market will collapse. If you believe in Bitcoin, Ethereum, or whatever, and you want to hold those assets, I don’t agree with your opinion, but you could do it. But put them on your own books so that way, at the very least, you don’t lose title to them, as you almost certainly will if you have them in any centralized entity.

That’s a blanket statement. I can’t say there’s a specific company that I think is worse than any other. They are all equally a risk. If anybody has any sense at this point, they’ll be pulling their money out of these things.

https://slate.com/technology/2022/11/ftx-collapse-sam-bankman-fried-dirty-bubble-cryptocurrency.html