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

[alyssa85]

https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

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)

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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.

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[clickerz]

https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

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)

.

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.

Wow, 

It's not surprising since Coinbase is one of the early legit adopters, pioneers I bitcoin online wallet. This means that more people are trusting coinbase and any other exchange, especially in the US.

I hope they have data for Binance too.

[alani123]

If it's really cold wallets then there really isn't much that can go wrong so long as it stays in cold storage. I'd expect Coinbase, having never been a victim of a major hack, would know their stuff.

[Wexnident]

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?

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 like their saying to hackers that there's a big pot of gold right here lmao. If someone actually managed to access their stash, welp, GG coinbase. Better luck next time.

[stadus]

That's a pretty big amount of money in equivalent, if that assets were deposited in a bank, it will have an insurance that deposits will get a certain maximum amount in case something happen to the money. I wonder what would be coinbase approach to ensured that big funds, Binance have a SAFU funds, how bout coinbase?

I am just concern about this a lot because of the trends that big exchanges are being hack, we have upbit recently.
https://www.theblockcrypto.com/post/48578/south-korean-crypto-exchange-upbit-gets-hacked-loses-nearly-50m-worth-of-ether

[audaciousbeing]

https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

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)

.

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.

Whether they advertise it or not, they are always a target and advertising it does not make them less of a target however, being a business means they can use everything at their disposal to ensure they have the right narrative or in the news for the good reasons. Announcing that they have such huge amount is also to send a message that they can be trusted since a whole lot of people have trusted them already. Another angle to the message is that they security architecture is top notch for them to be so buoyant about it and the same time not shy of the responsibility that have been bestowed upon them by virtue of this announcement.

[Serco]

With this assets amount we have to set multi layer security to prevent hacker attack this wallet. Make previous case as important lessson for them , hackers now be very smart  and already developt new technique to break exchange security system. Dont let them success or crypto market will dump again and investors will left to another financial market.

[Lanatsa]

If it's really cold wallets then there really isn't much that can go wrong so long as it stays in cold storage. I'd expect Coinbase, having never been a victim of a major hack, would know their stuff.

Dont know why some people do talk about possible hack yet we've been talking these funds being stored on a cold wallet which its nearly impossible to hack unless if those keys are lost or being compromised.

Almost 1M btc possession of coinbase isnt really that surprising though and as said they have never been a victim when it comes to security breaches which something means that
they are aware of everything when it comes to that matter.

[X-ray]

If it's really cold wallets then there really isn't much that can go wrong so long as it stays in cold storage. I'd expect Coinbase, having never been a victim of a major hack, would know their stuff.

Dont know why some people do talk about possible hack yet we've been talking these funds being stored on a cold wallet which its nearly impossible to hack unless if those keys are lost or being compromised.

Almost 1M btc possession of coinbase isnt really that surprising though and as said they have never been a victim when it comes to security breaches which something means that
they are aware of everything when it comes to that matter.

Agree with that, cold wallet is offline and there's no way hackers could get in touch with that except there's inside job doing an "accident" however, these many bitcoin being centralized into one place is kinda worrisome. When this news is published it feels like all these bitcoin are in possession of the exchange like they are owning it. I can't see how the users could get their money back if something happens to the exchange like for example the "accident" that I talked about. I only hope that people will store their own crypto into a more secured offline or hardware wallet because the security is a lot better.

[CarnagexD]

If it's really cold wallets then there really isn't much that can go wrong so long as it stays in cold storage. I'd expect Coinbase, having never been a victim of a major hack, would know their stuff.

Dont know why some people do talk about possible hack yet we've been talking these funds being stored on a cold wallet which its nearly impossible to hack unless if those keys are lost or being compromised.

They are discussing about coinbase storing its huge asset value on cold storage for possible hacking, why? Cold storage can be compromised if and only if it will be stolen but that is practically impossible to happen when a particular exchange handles it, I mean it never happened yet.

Almost 1M btc possession of coinbase isnt really that surprising though and as said they have never been a victim when it comes to security breaches which something means that
they are aware of everything when it comes to that matter.

With almost $2 billion dollars in various cases of hacking and stolen funds that started on 2017, It's not surprising at all seeing these exchanges to use cold storage wallet for their customer's assets. Their system have never been compromised and they should prevent that from happening at all times, at all cost.

[SaShiRaJaVu]

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)

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The hackers are monitoring all these exchanges and if they are not careful with their security like binance and the rest of the exchanges then they will run away with the coins and if any of these big exchanges gets hacked then there will be a major shake up in the market and it is even possible that the entire market will crash.

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.

Hackers are looking forward for these stash of coins and if they are not careful with the security then they will be looting everything and we have more hacks in the past and we do not want to hear another major hack yet again.

[Lucius]

Coinbase operates from 2012, and it is, therefore, no surprise that people trust them. They have very rigorous procedures for generating private keys, which include special rooms, computers that are destroyed after use, and backup in multiple locations around the world. According to them, 98% of the assets are located in cold wallets, and fiat they hold for users is also fully insured by banks with whom they work.

Although security is at an enviable level, it is strange that so much BTC is not actually owned by its owners (they not own private keys), and they can only pray that nothing bad happens. I think most are still not ready to be their own bank, but I think that will change over time - we do not need another Mt.Gox.

[blckhawk]

I'm also quite skeptical about such kind of publicity. But I guess it attracts more investors and traders into their platform. It gives potential clients assurance and comfort knowing the reputation of Coinbase is backed up by the whopping amount of their holdings. I think they know what they're doing and whether or not they have that amount, it's an advertising strategy and positioning their dominance in the market, now that another halving would occur and an increase number of new investors are expected to eye on cryptocurrencies.

[target]

Coinbase operates from 2012, and it is, therefore, no surprise that people trust them. They have very rigorous procedures for generating private keys, which include special rooms, computers that are destroyed after use, and backup in multiple locations around the world. According to them, 98% of the assets are located in cold wallets, and fiat they hold for users is also fully insured by banks with whom they work.

Although security is at an enviable level, it is strange that so much BTC is not actually owned by its owners (they not own private keys), and they can only pray that nothing bad happens. I think most are still not ready to be their own bank, but I think that will change over time - we do not need another Mt.Gox.

Destroying computers after use seem too much of a security measure, its a waste of money but probably because they know anyone can be computer forensic that can recover anything as long as it can possibly salvage. People actually use them for storage despite all the efforts of users reminding them that exchanges aren't safe. The number of exchange hacked and scam are in the news almost every year but yep no private key still something they don't worry.

[jossiel]

That's hefty amount of money but sure they have a strong security. They know the responsibility that they should have for covering their funds together with the funds of their customers.

I'm also quite skeptical about such kind of publicity.

I'm thinking the same thing about this matter of information. What's the reason for broadcasting that? I guess to attract and gain trust.

[panganib999]

I'm also quite skeptical about such kind of publicity. But I guess it attracts more investors and traders into their platform. It gives potential clients assurance and comfort knowing the reputation of Coinbase is backed up by the whopping amount of their holdings. I think they know what they're doing and whether or not they have that amount, it's an advertising strategy and positioning their dominance in the market, now that another halving would occur and an increase number of new investors are expected to eye on cryptocurrencies.

I really doubt its worth revealing that kind of information for a bit of advertisement and publicity. that is unless they are completely sure about the security of their wallets. But well, we all know that no system is perfect, no code can't be decoded, no house can't be entered. Besides, their already an old timer, ngl. I see no need to further advertise their abilities to the public when the public already knows that they are quite reputable and a lot of users have trust in their company.

[aardvark15]

This does support the fact that it’s an exchange that can pay out withdrawals. I have used Coinbase and they seem to be very good.

[drlukacs]

https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

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)

.

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.

wow, this is a very large number and if their cold wallets have problems then things will get really bad. I think if we have so much money, we should not hold too much at an exchange. We should split it for many large and reputable exchanges like Kraken, Huobi, Binance to minimize risks. or better yet we should send more in our own cold wallet. we only need to spend more than $ 100 and we have a wallet that no one can access, which is how I encourage people to hold onto their bitcoins. because if Coinbase is a greedy person, it will cheat and destroy the financial system of the crypto market by selling 966,230 bitcoins.

[gentlemand]

Good article about their practices - https://www.wired.com/story/coinbase-physical-vault-to-secure-a-virtual-currency/

It's a bonkers figure and I can't imagine it's going to shrink any time soon. Responsibility for billions of dollars' worth of something irreplaceable and probably uninsurable would have me waking up screaming.

[BitHodler]

This does support the fact that it’s an exchange that can pay out withdrawals. I have used Coinbase and they seem to be very good.

That doesn't necessarily mean they can pay out withdrawals because only a tiny percentage of these coins are sitting in hot wallets, which means that whenever people try to withdraw coins together, they will say no.

It's similar to the money you have in your bank account. You will not be able to withdraw everything (unless you have a low balance) because there isn't enough paper money in the reserve of an ATM, and you are subject to a daily limit.