Coinbase probably operates at $9-$19M deficit
Lately after strange moves from CoinBase team towards ETH people started digging deeper.
Its said that due to missing enough profits for round 4 they were so eager to add ETH and take parts of profits from massive volume - even though they didnt add LTC with so many people waiting.
There are already mentions that owner has highly invested into ETH and he as even voting up for Hard Fork, which got him alot of criticism in last days ( http://www.newsbtc.com/2016/07/19/brian-armstrong-etheruem-hard-fork/ ).
The guy here sums up situation of CB: http://thestringpuller.com/2016/06/the-coinbase-implosion-timer/
tldr; He says they got so overpriced and employeed so many people the company may be at even $20M deficit.
That would be really bad. What will happen with a lot of projects Bitcoin Vaults? Isn´t Lisk saving their coins at Coinbase? Time again to move funds to #BitShares.
This news is eye-opening for me. Have any of you used the newer Jaxx wallet? Do you like it?
They have gone all gung-ho with many things. The paypal tap was unexpected i thought at first, but then i realized they are as centralized as the bank down the street, so they will go anywhere there is coin i think. I have an account there but only for one reason and thats because of a Shift card i have connected to the account. I use it for when i need to pay for things that are urgent. But the plan is to become totally 'no bank' hopefully in the future, so coinbase will be a thing of the past for me anyway. And as for any crypto wealth i have it is kept very far and beyond any exchanges. There is no way in hell i would risk any significant amounts anywhere else but in my own hands.
$20M deficit?
that's insane
Wow!
is that mt.gox 2.0 all over again ?
Be on cold storage! thats the only way!
But adding ETH is wise move, but maybe too late. In the past Coinbase founders often supported strange projects: classic, XT
Maybe, I know personally I don't use coinbase I prefer cex.io, bittrex, and poloniex.
@kingscrown ltc doesn't usually have an amazing volume, its not heavily wanted/bought :(
I think we can agree coinbase are not decentralized and charge ridiculous fees. Gdax, on the other hand is a decent centralized exchange.
Im almost sure they have less real BTC stored than users on his accounts, thats why you only have REAL BTC if have cold storage, if you have your pirvate key. Coinbase is a great service, but is close to be a bank.