Topic: Take your Bitcoin off Coinbase - page 2. (Read 465 times)

The rumor was probably started by people working at a different exchange that is about to go under and they figured they could cause other people some doubt.

The funny part is that things like this are the reason that a lot of people want to go with BlackRock & Coinbase.
They have massive amounts of regulation to deal with and a ton of government people crawling though their books on a regular basis.

Although they might be able to get away with some things, the chances of them not having what they say they have vs other off shore unregulated exchanges is a lot less.

-Dave

BR could have started from the beginning with self-custody, but they didn't do it - what do you think for what reason? If they were capable of doing that, they wouldn't have entrusted the job to someone else, and no matter how strange it sounds, that someone is still a professional in that business. CB has very strict criteria when generating wallets, and also regarding the storage of private keys - there was an article a few years ago that described the entire procedure in detail.

Great effort on the warning, OP, but there’s no need to panic since the CEO of Coinbase has already denied that rumor.

The claims of Coinbase selling paper BTC to BlackRock was completely made up by influencers looking for clout. BlackRock didn’t want their investors panicking over this FUD so they amended their agreement with Coinbase so that on-chain settlement happens more frequently.

Keeping your Bitcoin off of custodial exchanges should be standard practice by now for most people so there is nothing to really be concerned about if you were being responsible and holding your own private keys.

In the first place exchange is just use for changing of your assets and not for storing of your funds and we know how does Coinbase has a lot of issues regarding with the data breaches personally before I was amazed with the Coinbase but now with their issues i don't seem they are still reliable ar this time. If you can afford with the Bitcoin I guess nothing wrong affording hardware wallet at least right or even hot wallet to make sure your funds are safe.

Yes, avoid storing your coins at third party platforms. Anything can go wrong with them at anytime, and once it happens your money is gone. Then you have a lot of headaches and troubles counting on the judiciary system and authorities to retrieve part of the funds back to return it to customers.

Meanwhile, you could just acquire a hardware wallet and store your coins this way, having total control over your funds at anytime. You can also keep the coins untouched for years and once you decide accessing it, your money will be still there waiting for you.

No risks of having your money stolen or seized. The only risk consists in you not being careful enough to store your wallet and keys safely... But that shouldn't be an issue at all for organized and responsible individuals.

It is quite possible mate I actually have this belief that it’s what the other exchanges do too, your real bitcoin is never on that exchange although most of them claim that the coins have been moved to custodial wallets but who knows how true that is, they are not different with the way the fiat banking system operates they simple Just drop figures on your wallet and then take the real money away or borrow it out.

This kind of thing was what lead to a scenario where many investors have a day where they request all their funds from exchanges to actually get a glimpse of which of this exchanges are lying. I wouldn’t say there are actually selling paper btc but I have always been curious on why we see the announcement of big buys by huge investors and yet we do not see any significant pump

The source of this news was not given, it just came from a random tweet that has gotten over a million views and many reposts. But there is some level of truth in some rumours. I know that Coinbase will refute this claim and tell investors that their funds are safe. But these CEX can do anything to make a profit so I don't doubt the claim that Coinbase might be deceiving BlackRock. People forget easily and want to always learn the hard way just like in the FTX case. The money you keep in centralised exchanges is not yours, you can lose it at any time.     

I have not used Coinbase so I don't have much input on that exchange platform and also it has been a music in the forum at all corners from local boards to the general boards. Nobody should keep their coins in any centralized exchanges because we don't have control over the coins and we can only see the coins but the company (exchange) control everything. They can block and close your account. And we were advise to keep and store our coins in a self custodial wallets which you control your funds by ourselves. Selling "Paper BTC" is something I am still thinking how possible is it. Save yourselves from any collapse of exchange. Prevention is better than crying.

As I accumulate more money, I was tempted and thinking to save some coins on exchanges and earn 6% APR but I still saw it not worth it than to hold my coins on a noncustodial wallet which I have the private key by myself and I have complete control over my coins, unlike to store it on the exchanges. Most exchanges offer savings and earning profits daily using APR for the calculation but people need to be very wise. Exchanges are not wise places to store coins. I prefer to avoid having coins on the exchanges. The only reason I have few coins on an exchange is because of trading but the amount is very small.

just for some detail and context


its been a long known fact that coinbase hoards coins in cold wallets. which everyone knows is a blockchain wallet that is completely separate and different to their online market order portal/database. so whilst people are trading coins on their exchange order books/database and updating their exchange balance database records. the coins themselves do not move unless withdrawn

so when coinbase is acting as both an open exchange and custodian for ETF, there is little need of movement of cold store coins from the exchange facility of coinbase and the custodian facility of coinbase. and so the only 'accounting' that can be relied upon is not blockchain data but instead coinbases internal database of account activity.. this has lead to some fear and risk that if coinbases internal records got corrupt then there is little to no known outside evidence that coins deposited, traded and then converted over to declared custodian housed coins, are actually for a ETF, nor proof of transfer had occurred.

and so these ETFS want coins traded in the exchange section to then be moved from that cold wallet, to a separate cold wallet for the ETF custody section. thus showing on the blockchain a list of coins sectioned off just for particular custody proofs of ETF's

its also a known detail(explained in coinbases terms and blackrocks etf application pages) that coinbase does not reveal its full methods of securing custody/ownership of funds it holds of its customers and how it also does not want to clarify its own accounting methods and audits of custody coins. and so again this makes ETF not fully 100% able to audit coinbase to prove that coinbase is not 'double dipping' coins (possibly suggesting certain coins are of company Y ownership whilst secretly telling company Z the same coin allotment are theirs too.. )

so these etf's want more transparency from coinbase to show better proof of custody and auditable methods that can protect ETF and trust coinbase to be their custodian

Your advice is not redundant but is it too late to give this advice to people after what happened with Mt.gox and FTX? I think everyone is aware of the risks of storing assets on centralized exchanges after their collapses.

I also read some Fuds about Bitcoin ETF a few days ago but Blackrock sending a request to Coinbase just confirms that the news being spread is fake. As you said: they want transparency, they want everything to be clear, and they are not implying that Coinbase is shady or unsafe as you say.


I don't advocate using Coinbase because as far as I know they often freeze user accounts for no reason and that's very annoying. But what you spread is not true, so far Coinbase is safe.

Self custody should be the only option if you want maximum safety. Unless you make trades everyday it doesn’t make any sense to hold coins on any exchange anyway. I would only keep some coins if they paid me 5% interest on my btc. Otherwise I will be funding their liquidity for free. I only keep some coins on some casinos and it is because they pay me interest and it is not all my funds. Just a small portion.

BlackRock finally learned "not your keys, not your bitcoin." They wanna store on chain Bitcoin by themselves instead of letting CB store it for them.


Or they learned from Mtgox's case. So, they wanna ensure they own real bitcoin, too.

I believe it is more like a fud attempt than a news about truth.

Bitcoin Spot ETFs were designed that ETF companies will have to use customer capital, and they must buy bitcoin first with equivalent value of ETF shares that they will mint later.

Most of Bitcoin Spot ETFs have their custodians is Coinbase ^[1] and months ago, it raises big concern on Coinbase factor here. If anything goes wrong with Coinbase, you know what will happen.

^[1] https://blockworks.co/bitcoin-etf

Another thing about Coinbase, expensive trading fee and withdrawal fee.

• Problems with Coinbase withdrawal fee.
• It is similar to what I discussed years ago. Old story. Exchanges get profits from users' withdrawal fees.

Bitcoins history is littered with exchange failures, hacks & scammers. There is a reason that the phrase, not your keys not your coins exists. Self custody is really important so yes, please take your coins off Coinbase & any other exchange.

Good advice, but let's say you are years late - because everyone who still thinks that CEXs are some kind of bank that can store cryptocurrencies in the way that regular banks "store" fiat, is actually living in one big misconception. Nothing bad will happen with that CEX, they are literally under the control of the state and have a privileged status, which can be seen from the fact that they are favored by the majority of spot BTC ETFs.

Here is a good topic from 4 years ago -> Coinbase the most anti-Bitcoin organisation. Make #DeleteCoinbase great again

I tried to find something coming directly from BlackRock but I couldn't.
They have two Twitter profiles: BlackRock and BlackRock_News.
This is their Press Releases page.
Additional company news can be found in their Global Newsroom.
Finally, this isn't an official source, but Yahoo Finance doesn't link to such information either.

Still, all this doesn't mean that the information isn't correct.

Other then some random guys tweet is there any real news on this. A press release or other statement by BlackRock?

If not it's irrelevant since anybody can tweet anything about anything.

If BlackRock is now requiring this, it's a major change of policy and the agreement between the 2 of them and it's required to be disclosed by them.

-Dave

Not just Coinbase but CEX entirely. It is not a safe place to store bitcoin because any mistake will lead to lose. The drama happening in Coinbase lately is already a signal that people should have used to protect their asset by taking them to their personal wallets but it seems some people are still ignorant of the dangers of storing assets in CEX. It is popular thing here that wallets that one have the private keys are the only safe place to store assets so people should act accordingly.