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1. GeniusMusing (geniusmusing@nu.federati.net)'s status on Wednesday, 11-May-2022 14:55:48 EDT GeniusMusing
   WHAT!!!
   
   Coinbase Works to Calm Users Fears of Crypto Bankruptcy
   https://gizmodo.com/coinbase-bankruptcy-crypto-exchange-volatile-market-1848911005
   
   >If you’re used to riding the cyrpo rollercoaster, then you know the admission to ride comes with the promise of both ups and downs.
   >
   >But this news maybe caught you off guard. Some investors in Coinbase are rightfully spooked by language discovered in a 10-Q form the company filed with the U.S. Securities and Exchange Commission. Page 83 of the 135 page filing says: “Moreover, because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.”
   >
   >An unsecured creditor is one who lends money without obtaining collateral of similar value—a common example of an unsecured creditor is a credit card company. In the case of Coinbase, the users would be the unsecured creditors. Fortune is reporting that if Coinbase goes bankrupt, then users with funds tied up with the company will no longer have access to them, which fundamentally undermines the entire point of cryptocurrency.
   1. lnxw48a1 (lnxw48a1@nu.federati.net)'s status on Wednesday, 11-May-2022 20:04:22 EDT lnxw48a1

      in reply to
      I saw a headline earlier with the BK word and Coinbase in the same sentence, but hadn't stopped to read it.
      
      I'm sure @guizzy@pleroma@guizzyordi.info can give the exact wording, but there's a saying in the cryptocurrency world that if your coins & tokens are not held in an offline wallet that only you control, they are not really yours.
      
      The point of cryptocurrency is about weakening the power of the intermediaries who currently choose the winners and losers. One cannot do that while simultaneously leaving one's holdings in the custody of yet another intermediary.
      
      We should think of exchanges as places for money in transit, not as places for money at rest. Western Union, not Bank of America.
      
      That said, it is alarming that the word bankruptcy is being bandied around and as far as I know, their customers have not been warned of the danger.
      
      I will inform both #sonTwo and #Daddy_A, in case either of them has an account and left some currency in the account.
      1. lnxw48a1 (lnxw48a1@nu.federati.net)'s status on Wednesday, 11-May-2022 20:05:32 EDT lnxw48a1

         in reply to
         ^ @guizzy See thread https://nu.federati.net/conversation/2545813#notice-3400693
         1. just an actual husbear (guizzy@pleroma.guizzyordi.info)'s status on Wednesday, 11-May-2022 20:33:05 EDT just an actual husbear

            in reply to
            @lnxw48a1 Yeah, "not your keys, not your coins" is the saying.