That's why this new vault functionality is so important, it protects your assets from personal negligence.
With these new features, all your bases are covered.
'All digital currency that Coinbase holds online is fully insured.
'Coinbase holds less than 2% of customer funds online. The rest is held in offline storage.'
They only insure less than 2% of their coins. This does nothing to protect private keys that go missing or are destroyed in their offline wallets.
I would love to know that I'm wrong.
https://support.coinbase.com/customer/portal/articles/166237...
In the future I imagine crypto wealth will be secured by breaking it into multiple wallets stored in vaults controlled by different organizations. That protects you from total asset loss due to institutional failure. And this type of failure isn't limited to crypto (see Bernie Madoff's hedgefund).
I thought Coinbase had insurance that only covered the online portion but not offline vaults, where most of the 'money' is stored?
If an offline vault is compromised through their system then what? The promise of keeping things separate doesn't guarantee anything.