Thread: Coinbase
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Old 17 May 2022, 12:30 AM   #26
HHIslander
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Join Date: May 2020
Real Name: Henry
Location: USA
Posts: 4,188
Quote:
For those who believe an exchange can’t go under - such short memories…Mt. Gox?

For those who believe financial risk can’t bring down a broker…Lehman?
Gox was hacked and went under due to lax security, so I guess Coinbase could go down if they have security issues. I'd like to think the industry has learned a lot about security since 2014.

Lehman example isn't really applicable. They went down due to investing and underwriting high risk assets. Coinbase mostly processes transactions and stores crypto, they don't invest that crypto and they don't underwrite or issue any types of securities. Two very different business models with different fiduciary obligations and responsibilities. Coinbase is investing it's own cash into crypto and other types of crypto related areas, so maybe that is a risk.
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