Topic: Coinbase Holds a Whopping 966,230 Bitcoin ($7B) in Cold Wallet (Read 758 times)
Staggering numbers and it is impossible to imagine how much money is stored by Coinbase.
December 14, 2019, 03:21:13 PM
https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
I don't think they are advertising about that but such data is quite easily available in any block explorer. Moreover there obviously is a risk associated with such cold wallets but I am pretty sure that they must be holding it in some sort of paper wallet or some trezor. I think there can be one security feature which these sites might use or might even be using which is splitting their private key in 4 parts and giving it to 4 separate persons. This way even if one person is extorted by anyone he cannot obviously get the private key to the wallet. But yes the private key as a whole must obviously be stored somewhere else too because otherwise it would make it very dangerous if the person knowing it dies in any unexpected incident. We already have seen such things happening. Quote
According to recent reports, Coinbase has a whopping 966,230 Bitcoin in its cold wallet. The exchange is increasingly becoming like a ‘bank’ which stores a growing number of deposited cryptocurrency assets.
Other exchanges lag behind Coinbase, but still have sizeable cold wallets from its depositors and own funds. BitMEX has around 265,140 BTC ($1.94B) while Bitstamp comes in third with 229,490 BTC ($1.67B). Other top exchanges by assets under its custody are Bitfinex (146,120 BTC), Kraken (136,780 BTC), Bittrex (131,340 BTC), and Coincheck (35,090 BTC)
.Other exchanges lag behind Coinbase, but still have sizeable cold wallets from its depositors and own funds. BitMEX has around 265,140 BTC ($1.94B) while Bitstamp comes in third with 229,490 BTC ($1.67B). Other top exchanges by assets under its custody are Bitfinex (146,120 BTC), Kraken (136,780 BTC), Bittrex (131,340 BTC), and Coincheck (35,090 BTC)
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
December 14, 2019, 03:05:07 PM
They are not really showing off, they are basically telling people that the money they claim to have on their storage is actually there, think about it this way, if you had coins in coinbase and didn't know how much money they have, wouldn't you be a bit worried? I mean if they claim to hold 1 million coins on their storage on behalf of their customers but they just had 100k, wouldn't that be scamming? A ponzi scheme?
It would be, so this is basically a way of them saying "we do actually hold the coins we claim to hold for you, and plus some more" so that people would trust them to be their wallets. Coinbase isn't showing off here, they are building a reputation and trust that they otherwise couldn't get in any other way then showing how much coins they have.
It would be, so this is basically a way of them saying "we do actually hold the coins we claim to hold for you, and plus some more" so that people would trust them to be their wallets. Coinbase isn't showing off here, they are building a reputation and trust that they otherwise couldn't get in any other way then showing how much coins they have.
Is it really the only way for them to gain the trust of their users? I don't think so. Neither is it the only way to build their reputation. In the first place, Coinbase doesn't have to build a reputation because they already have it. They don't have to earn the trust of people because they already have it. When they were still growing, did they publish or release the figures of the amount of coins that they have? They didn't. Furthermore, does Binance, Huobi, KuCoin, etc. let the people take a peek at their holdings to build reputation and trust? I don't think so.
Or they could be accused as well of practicing fractional reserve banking in a market in which most of its participants are against it.
December 11, 2019, 03:51:03 AM
They are not really showing off, they are basically telling people that the money they claim to have on their storage is actually there, think about it this way, if you had coins in coinbase and didn't know how much money they have, wouldn't you be a bit worried? I mean if they claim to hold 1 million coins on their storage on behalf of their customers but they just had 100k, wouldn't that be scamming? A ponzi scheme?
It would be, so this is basically a way of them saying "we do actually hold the coins we claim to hold for you, and plus some more" so that people would trust them to be their wallets. Coinbase isn't showing off here, they are building a reputation and trust that they otherwise couldn't get in any other way then showing how much coins they have.
It would be, so this is basically a way of them saying "we do actually hold the coins we claim to hold for you, and plus some more" so that people would trust them to be their wallets. Coinbase isn't showing off here, they are building a reputation and trust that they otherwise couldn't get in any other way then showing how much coins they have.
Is it really the only way for them to gain the trust of their users? I don't think so. Neither is it the only way to build their reputation. In the first place, Coinbase doesn't have to build a reputation because they already have it. They don't have to earn the trust of people because they already have it. When they were still growing, did they publish or release the figures of the amount of coins that they have? They didn't. Furthermore, does Binance, Huobi, KuCoin, etc. let the people take a peek at their holdings to build reputation and trust? I don't think so.
December 11, 2019, 03:36:50 AM
They are not really showing off, they are basically telling people that the money they claim to have on their storage is actually there, think about it this way, if you had coins in coinbase and didn't know how much money they have, wouldn't you be a bit worried? I mean if they claim to hold 1 million coins on their storage on behalf of their customers but they just had 100k, wouldn't that be scamming? A ponzi scheme?
It would be, so this is basically a way of them saying "we do actually hold the coins we claim to hold for you, and plus some more" so that people would trust them to be their wallets. Coinbase isn't showing off here, they are building a reputation and trust that they otherwise couldn't get in any other way then showing how much coins they have.
It would be, so this is basically a way of them saying "we do actually hold the coins we claim to hold for you, and plus some more" so that people would trust them to be their wallets. Coinbase isn't showing off here, they are building a reputation and trust that they otherwise couldn't get in any other way then showing how much coins they have.
December 10, 2019, 05:27:24 PM
https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
Quote
According to recent reports, Coinbase has a whopping 966,230 Bitcoin in its cold wallet. The exchange is increasingly becoming like a ‘bank’ which stores a growing number of deposited cryptocurrency assets.
Other exchanges lag behind Coinbase, but still have sizeable cold wallets from its depositors and own funds. BitMEX has around 265,140 BTC ($1.94B) while Bitstamp comes in third with 229,490 BTC ($1.67B). Other top exchanges by assets under its custody are Bitfinex (146,120 BTC), Kraken (136,780 BTC), Bittrex (131,340 BTC), and Coincheck (35,090 BTC)
.Other exchanges lag behind Coinbase, but still have sizeable cold wallets from its depositors and own funds. BitMEX has around 265,140 BTC ($1.94B) while Bitstamp comes in third with 229,490 BTC ($1.67B). Other top exchanges by assets under its custody are Bitfinex (146,120 BTC), Kraken (136,780 BTC), Bittrex (131,340 BTC), and Coincheck (35,090 BTC)
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
It's a shame really. Coinbase nor any other 3rd party should not be used by people as cold storage. We've seen it time and time again that these places get "hacked". Crypto allows people to be their own but but many refuse to do so. One day personal cold storage without the use of 3rd parties will get so easy to use that those 3rd parties wont be needed for wallet services. Until that time comes more and more people will lose their bits due to "hacks".
December 10, 2019, 04:41:14 PM
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
I don't really see anything wrong with them showing how much they hold in their cold wallets, that's what you call transparency. Saying that they are advertising their stash is just like saying that Bill Gates shouldn't be showing off his net worth lol.So, I don't see anything wrong with it. And I'm not surprised that Coinbase owns that much of coins stored in their cold wallet, they are like (one of) the biggest crypto exchanges there is. And apart from being on the list of top exchanges they are the most secure exchange (that I know for sure), and recently they introduced a new feature of covering customer's funds by insurance, and I don't think any exchange have ever done that yet.
It is anything but transparency. It's showing off;) They're a business and they want to show people that a lot of rich boys trust their bitcoin with them. BitGo does it too, and regularly runs PR to remind people they're the biggest in the business and guard a huge portion of the world's available bitcoin.
Corporate types don't like transparency. Don't be fooled;)
Was suppose to say the same thing where this one doesnt shows off about transparency but rather a literal show off on what they are holding.
This is indeed part of their marketing that telling the world that they are trustable enough for bitcoin users to use up their site or service.
I cant deny though that Coinbase does really have that strong security yet we havent seen this exchange have issues about breaches or security matters.
December 10, 2019, 02:46:47 PM
The larger their stash of Bitcoins the more trustworthy they are as an exchange. I would trust holding my BTC, ETH, LTC and other cryptocurrencies on Coinbase simply because they have such a large stash.
Most banks operate in the same way.
Why do you think that the number of the bitcoins that they are holding makes an exchange more trustworthy? That only means that there is a lot of people that are holding their coins there nothing more, and if anything that should be consider to be a risk because you can be sure that if we know that hackers know that information as well and they are going to try to get to those coins by all means possible.Most banks operate in the same way.
And that is a huge issue for this market because if at some point they do steal that huge amount of coins that could immediately crash the market and it will be difficult for it to recover.
December 10, 2019, 11:24:26 AM
If they hold that much amount in the cold wallet, then my opinion is that they should get some sort of an insurance, or get additional security measures. They should have hidden their holdings, as this news is definitely going to attract hordes of hacker groups. The amount stolen from Mt Gox was BTC650,000. And what Coinbase have in their cold wallets is even higher.
December 10, 2019, 07:05:12 AM
I agree with the description of it being called bank-like - there are probably national banks in some countries that hold less than BTC7.
As for why they are releasing this I'd say it's to show that they are definitely big and that all those people entrusted their money with them and so should you.
As for why they are releasing this I'd say it's to show that they are definitely big and that all those people entrusted their money with them and so should you.
December 10, 2019, 03:56:55 AM
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
I don't really see anything wrong with them showing how much they hold in their cold wallets, that's what you call transparency. Saying that they are advertising their stash is just like saying that Bill Gates shouldn't be showing off his net worth lol.So, I don't see anything wrong with it. And I'm not surprised that Coinbase owns that much of coins stored in their cold wallet, they are like (one of) the biggest crypto exchanges there is. And apart from being on the list of top exchanges they are the most secure exchange (that I know for sure), and recently they introduced a new feature of covering customer's funds by insurance, and I don't think any exchange have ever done that yet.
It is anything but transparency. It's showing off;) They're a business and they want to show people that a lot of rich boys trust their bitcoin with them. BitGo does it too, and regularly runs PR to remind people they're the biggest in the business and guard a huge portion of the world's available bitcoin.
Corporate types don't like transparency. Don't be fooled;)
December 10, 2019, 03:10:25 AM
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
I don't really see anything wrong with them showing how much they hold in their cold wallets, that's what you call transparency. Saying that they are advertising their stash is just like saying that Bill Gates shouldn't be showing off his net worth lol.So, I don't see anything wrong with it. And I'm not surprised that Coinbase owns that much of coins stored in their cold wallet, they are like (one of) the biggest crypto exchanges there is. And apart from being on the list of top exchanges they are the most secure exchange (that I know for sure), and recently they introduced a new feature of covering customer's funds by insurance, and I don't think any exchange have ever done that yet.
December 10, 2019, 02:53:40 AM
Well it's because people really like to centralize their asset into one exchange anyway. Imagine 25% of bitcoin circulated supply got saved in one cold wallet that's just frightening because once it got stolen by someone then we're done for. That's why it's good to see new quality legit exchange appear just for the sole purpose of competing with these dominant exchange and potentially decentralized their assets by attracting some of their users.
There can be a lot of scenarios. Some of them can be positive as well. Imagine a scenario in which 25% of all the circulating supply getting accumulated in a single wallet (very unlikely scenario in reality). And imagine the private keys getting lost. Now all the coins that are contained in the wallet becomes unusable. Now this is good news for the remaining users, because as per rational logic, the price of the remaining coins should rise by 25%. So not everything is bad news in my opinion.
December 09, 2019, 10:41:59 PM
Well it's because people really like to centralize their asset into one exchange anyway. Imagine 25% of bitcoin circulated supply got saved in one cold wallet that's just frightening because once it got stolen by someone then we're done for. That's why it's good to see new quality legit exchange appear just for the sole purpose of competing with these dominant exchange and potentially decentralized their assets by attracting some of their users.
There can be a lot of scenarios. Some of them can be positive as well. Imagine a scenario in which 25% of all the circulating supply getting accumulated in a single wallet (very unlikely scenario in reality). And imagine the private keys getting lost. Now all the coins that are contained in the wallet becomes unusable. Now this is good news for the remaining users, because as per rational logic, the price of the remaining coins should rise by 25%. So not everything is bad news in my opinion.
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December 09, 2019, 10:03:22 PM
Forgot how much BitGo has, but I recall it's a lot more than Coinbase. And in that instance, they like sort of advertising it (since they're a custodial service). Literal mountain vaults storing private keys, apparently, though I'm baffled as to why anyone would pay someone to guard something digital like that.
Well, okay, not exactly baffled. The way the minds of the super wealthy work don't really change when it comes to Bitcoin. It's like, the richer you get the more you want to trust your money to other people.
Usually, the more money you have in your wallet the more it will become a burden to keep up with the security as well as always being paranoid and I can see that those wealthy people resort to a service like BitGo to let go their worries and that's why their services is selling like a hot cake although it's basically just letting someone else managing our money and the feeling of our money being safely guarded is just sort of placebo effect. But, to see a company holding that whooping amount of money is simply unbelievable considering that crypto supposed to be decentralized. Well, okay, not exactly baffled. The way the minds of the super wealthy work don't really change when it comes to Bitcoin. It's like, the richer you get the more you want to trust your money to other people.
December 09, 2019, 12:49:12 PM
Forgot how much BitGo has, but I recall it's a lot more than Coinbase. And in that instance, they like sort of advertising it (since they're a custodial service). Literal mountain vaults storing private keys, apparently, though I'm baffled as to why anyone would pay someone to guard something digital like that.
Well, okay, not exactly baffled. The way the minds of the super wealthy work don't really change when it comes to Bitcoin. It's like, the richer you get the more you want to trust your money to other people.
Well, okay, not exactly baffled. The way the minds of the super wealthy work don't really change when it comes to Bitcoin. It's like, the richer you get the more you want to trust your money to other people.
December 09, 2019, 12:21:42 PM
This is an astronomical number at nearing one million bitcoins in cold storage.
I am with most here what is the point in advertising this to the public. Wouldn't it put a target on them for potential hacking attempts?
I don't think binance will ever publicize how many bitcoins they hold in the company's cold wallet. This is sort of their customers information.
This is just asking for trouble when it comes to finances.
I am with most here what is the point in advertising this to the public. Wouldn't it put a target on them for potential hacking attempts?
I don't think binance will ever publicize how many bitcoins they hold in the company's cold wallet. This is sort of their customers information.
This is just asking for trouble when it comes to finances.
December 09, 2019, 11:51:24 AM
https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
Quote
According to recent reports, Coinbase has a whopping 966,230 Bitcoin in its cold wallet. The exchange is increasingly becoming like a ‘bank’ which stores a growing number of deposited cryptocurrency assets.
Other exchanges lag behind Coinbase, but still have sizeable cold wallets from its depositors and own funds. BitMEX has around 265,140 BTC ($1.94B) while Bitstamp comes in third with 229,490 BTC ($1.67B). Other top exchanges by assets under its custody are Bitfinex (146,120 BTC), Kraken (136,780 BTC), Bittrex (131,340 BTC), and Coincheck (35,090 BTC)
.Other exchanges lag behind Coinbase, but still have sizeable cold wallets from its depositors and own funds. BitMEX has around 265,140 BTC ($1.94B) while Bitstamp comes in third with 229,490 BTC ($1.67B). Other top exchanges by assets under its custody are Bitfinex (146,120 BTC), Kraken (136,780 BTC), Bittrex (131,340 BTC), and Coincheck (35,090 BTC)
I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.
But we do know that it was popular wallet in the world of crypto and we can also believe on that because that was fame and not all wallet are that kind of coin.
If you want to know it really by the real value then do some research from Internet because there's a chance that there's some value from day to day in and out of coin.
December 09, 2019, 10:39:50 AM
Well I think they are just trying to show how They are on the top of the game in terms of bitcoins and how thus can change the game anytime they want ..
First they were just some company helping people buying and selling bitcoins and trading and stuff, now they are a whale too which is actually scary and this amount of bitcoins comes with such a huge security so people can actually count on them for this . Hopefully they have good intentions with it ...
It should not be very shocking or horrible to discover big exchanges holding huge amounts of bitcoin. That totally makes sense. No one can understand the power of crypto currencies more than these exchanges which played vital role in growing bitcoin. These can be expected to hold assets that are highly supported by them. Why won’t they have bitcoin when it can bring huge money and power? Obviously they would. First they were just some company helping people buying and selling bitcoins and trading and stuff, now they are a whale too which is actually scary and this amount of bitcoins comes with such a huge security so people can actually count on them for this . Hopefully they have good intentions with it ...
December 08, 2019, 12:28:54 PM
That is a HUGE amount of bitcoins for them holding into a cold wallet ( even if its a multi-users wallet ) and I hope nothing wrong will go with that wallet as that would put Bitcoin into 1k$ without any doubts and its gonna be like a flashback when mtgox was hacked and Bitcoin touched 90$ into some exchanges.
So far we had a hack every year on exchanges and 2020 will be no different ...lets hope that users wallet on Coinbase will not be affected or Bitstamp / Binance.
So far we had a hack every year on exchanges and 2020 will be no different ...lets hope that users wallet on Coinbase will not be affected or Bitstamp / Binance.
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