Coinbase Holds a Whopping 966,230 Bitcoin ($7B) in Cold Wallet

[kapalmabur]

They should really not be advertising it.

Who the hell did leak this numbers to those bloggers or Coinbase transparent about this numbers?
Now, it could be the reason for more attacks in their website. Although they might have a better security than other exchanges they could still be holes where hackers could get in.
Just one wrong move could risk every coin they hold.

really brave, but if we logically it seems like Coinbase won't leak it, maybe their workers are there or they are manipulating that number,
if all the bitcoin is sold at a low price I'm sure the panic sell will come

[1714587298]

1714587298

[plast555]

This is a very high number. Coinbase is a reliable exchange and can compete with most banks with their assets.
The amount of Bitcoin they hold is equal to 1/21 of the total supply.
I hope this exchange never comes across a hacking case. Btw, I didn't aware of beincrypto.com; it seems an excellent news platform.

[BChydro]

This is a very high number. Coinbase is a reliable exchange and can compete with most banks with their assets.
The amount of Bitcoin they hold is equal to 1/21 of the total supply.
I hope this exchange never comes across a hacking case.

 
How are they able to compete with the banks, both are two different asset class altogether and coinbase needs the help of banks to have a smooth transactions for their customer but the banking sector does not need a crypto company other than having more business, so you need to think about the difference in their business model and yes they are holding majority of the coins and i am sure they have taken steps to secure their assets and not like some shitty exchanges. Despite saying that i am not comfortable to see majority of the coins being held in one place.
 

[samcrypto]

Hackers are working on every exchange but since coinbase is good, they can't easily hack the system so I'm confident that investors are still safe in Coinbase despite of this advertisement. They hold a huge fund at a col wallet, and if you have bitcoin in coinbase you must still need to protect it and don't rely on coinbase system itself. I hope this numbers can help the market to survive, by that numbers we should start pumping.

[meliodas]

Hackers are working on every exchange but since coinbase is good, they can't easily hack the system so I'm confident that investors are still safe in Coinbase despite of this advertisement. They hold a huge fund at a col wallet, and if you have bitcoin in coinbase you must still need to protect it and don't rely on coinbase system itself. I hope this numbers can help the market to survive, by that numbers we should start pumping.

Even though coinbase is holding their bitcoin at their own cold wallet. Its users still need to pull out their own cryptocurrencies there and try to store it by their own so even there will be an unexpected event in coinbase like hacking then there is no chance for them to lose money as they already stored their cryptocurrency safely.

[rose9696]

They are actually holding large amounts of money and this is really lucky for the crypto community. Because I have known Coinbase for a long time, they are a reputable organization and have a great level of security. so hackers can't get into their cold wallets or security systems to steal coins or anything. If you have a lot of money, I recommend you send some at Coinbase to ensure safety, in addition, the transaction fee is 10 times cheaper than other wallets.

[tippytoes]

They are actually holding large amounts of money and this is really lucky for the crypto community. Because I have known Coinbase for a long time, they are a reputable organization and have a great level of security. so hackers can't get into their cold wallets or security systems to steal coins or anything. If you have a lot of money, I recommend you send some at Coinbase to ensure safety, in addition, the transaction fee is 10 times cheaper than other wallets.

But is there advantage of the disclosure of how much they are holding? This is a good target for those hackers in case. Remember, the softwares are now getting sophisticated. Or if they have really great security, inside job would be hard to beat. If someone from those trusted personnel will change his mind and be driven by greed, such possible loss will always be imminent. So for those holding their coins in that exchange, don't be too confident that your coins are truly safe. Better store it in your own hardware wallet.

[larus]

Just imagine how deep can coinbase drop btc

[shoreno]

Just imagine how deep can coinbase drop btc

yes they can if that is thier own coin but coinbase is only a wallet and also an exchange now so all of those funds are only came from thier costumers  . only costumers can decide if they will sell or dump the market or if they will buy more and up the market .  those numbers of btc is huge but im not shock whatsoever  because this was not the only time i saw that kind of amount but other wallet/exchange company owns double or even tripple than that  .

[gentlemand]

Just imagine how deep can coinbase drop btc

Control and ownership are rather different things. Coinbase don't own any of it. It belongs to their customers. If all of those coins were their personal holdings this thread would probably set your computer on fire just by perusing it.

All the same you can't get those coins out without their permission and cooperation which is not a healthy state of affairs.

[alyssa85]

Hackers are working on every exchange but since coinbase is good, they can't easily hack the system so I'm confident that investors are still safe in Coinbase despite of this advertisement. They hold a huge fund at a col wallet, and if you have bitcoin in coinbase you must still need to protect it and don't rely on coinbase system itself. I hope this numbers can help the market to survive, by that numbers we should start pumping.

Hah! Famous last words.

Coinbase says they are safe, and they probably believe that. But all the exchanges believe they're safe till someone manages to break through. They just need one super-smart hacker to do it.

The whole point of decentralised cryptocurrency is that there isn't a single point of failure that can wreck the whole project. By centralising coins in an exchange like Coinbase, you bring the single point of failure back into play. Maybe we can trust coinbase, but what if we can't?

[Karmakid]

I am not surprised to see that coinbase is holding this huge amount of bitcoins. The users of coinbase has nothing to worry about because their bitcoins are in a cold wallet so even though there will be a lot of cyber attacks directly to coinbase then there is nothing they can get from coinbase because the funds are already in a safe place.

[vintages]

What where they thinking when they released this report? They seriously shouldn't have done it.
It's all about been security conscious and they will be blamed if anything tends to happen to users funds.
Of course, we all know that a long time exchange like Coinbase will be having millions of digital currency in their database but this public announcement is just a total ten off: worst marketing strategy.

[el kaka22]

I still can't believe how we managed to find a way to centralize bitcoin when it was something so decentralized. Guys literally collected over a million bitcoins, how? All because we gave it to them so they can hold our coins for us. Not only they are making so much money thanks to trading fees and withdrawals and purchases etc etc basically everything costs a fee, but they are also keeping peoples bitcoins on their own vaults. They could literally tell people there is 100 bitcoins when there is 50, who would be able to deny their fact?

I seriously think we should be focusing more on DEX exchanges where nobody really gives anyone any money until the trade, there is no deposits and no withdraws, just pure trading between two wallets, technology is there.

[Vishnu.Reang]

I still can't believe how we managed to find a way to centralize bitcoin when it was something so decentralized. Guys literally collected over a million bitcoins, how? All because we gave it to them so they can hold our coins for us. Not only they are making so much money thanks to trading fees and withdrawals and purchases etc etc basically everything costs a fee, but they are also keeping peoples bitcoins on their own vaults. They could literally tell people there is 100 bitcoins when there is 50, who would be able to deny their fact?

I seriously think we should be focusing more on DEX exchanges where nobody really gives anyone any money until the trade, there is no deposits and no withdraws, just pure trading between two wallets, technology is there.

In that case Satoshi Nakamoto also holds one million coins. You can't say that Bitcoin is centralized, because 1 million coins represent only around 5% of the circulating supply. The other cryptocurrencies are much more centralized. For example, it is rumored that a handful of promoters hold somewhere between 80% and 90% of all the XRP circulating supply.

[gentlemand]

In that case Satoshi Nakamoto also holds one million coins. You can't say that Bitcoin is centralized, because 1 million coins represent only around 5% of the circulating supply. The other cryptocurrencies are much more centralized. For example, it is rumored that a handful of promoters hold somewhere between 80% and 90% of all the XRP circulating supply.

But anyone was free to out mine him and I'm sure he would've been delighted if that had happened from minute one.

For better or worse many people want centralisation. They want a company to whine to. They want them to do the hard stuff in terms of security. At least on the surface they appear to be doing an adequate job of it. I couldn't care less what others do with their coins and at least they're not like Bitstamp and make bullshit demands of outrageous invasiveness.

[wxa7115]

Imagine if coinbase went crazy and let loose this amount of BTC in the world. Well, by the end though, these amounts of BTC would still spread over the globe to various users to be used as a form of currency. We all are waiting for that time that Fiat is replaced by crypto, and well, holding or storing coins impacts the idea of replacement negatively. Besides, why store something that is supposed to be used right?

Coinbase cannot do that because most likely those are the funds of their clients and it is not up to them to decide how to use that money, the only thing that they have to do is to secure those coins properly, it seems to me that you have the wrong idea about what bitcoin represents, bitcoin is capitalist to its very core, the concept of a coin that no one can take away from you without your permission means that you have complete ownership of your money, something that you cannot do with fiat.

The concept of giving away your coins just so other people could begin to use them could have been a viable strategy when bitcoin was worth just a few cents but not now.

[beerlover]

I think the point of "cold wallet" is both quite risky but also the thing that makes people believe its safe.
First of all its really really difficult to hack a cold wallet, the whole point of cold wallet is not being easy to hack, you have to have someone from the inside to be able to hack it.

However, let's remember mt.gox was hacked and they had money in cold wallets too, so inside work is still possible. Plus we heard just recently the owner of IDAX ran away with the cold wallet as well. So, from the regular hacks its safe, but from a bigger situation its still possible. Whats the difference between coinbase and idax? Coinbase is based in USA and if they ever do anything similar and run with it, they have to move countries because USA will not allow and will prosecute them, so they need to be in a country like Brazil or Singapore where there is no extradition.

[Febo]

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.

When you hold $7 billion you for sure have good security. That is a yearly budged of not that small country. Their cold storage's are for sure secured by guns.

[L0FH6]

It looks like Coinbase wants to have a viable backing to their financial future to have any peg to value at all given the ponzi scheme of a fractional reserve banking system we are currently under.