Brian Armstrong has to say Coinbase is risk-free... I mean, what else is he going to say?
If they are truly holding customer funds and crypto 1:1, then you cannot do a bank run on them. They will just pay out. Which is what Armstrong says.
Frankly, after all this shit if an exchange can prove they are reliable and reputable, which Coinbase has so far, they are likely to emerge quite well out of all this (unless the entire crypto market loses all credibility or gets regulated into nothing).
I have no idea how Coinbase operates, so please forgive my ignorance: How do they prove that they are trustworthy?
This is MUCH more transparency than some corp in the bahamas.
Obviously it's not complete security, Enron was a public company and audited, but it's still considerably better than FTX or Binance.
I don't believe that is entirely accurate. Coinbase used to have a pro account with margin trading. Unless they managed to clearly unwind that business there is a risk that something went wrong at one point.
If they steal customer funds, then all is off, but same when there is no margin trading involved.
https://en.wikipedia.org/wiki/Mandy_Rice-Davies#%22Well_he_w...