Take your Bitcoin off Coinbase

[Outhue]

If you are asked which company or any organisation fits market manipulation the most I bet many people will say its BlackRock, including myself.

Today it seems I might not be completely right, BlackRock now requires Coin base to deposit Bitcoin directly on-chain within 12hrs of instruction after concerns were been raised that Coinbase is selling "paper BTC" to ETFs.

https://x.com/BTC_Archive/status/1838227189835108862

This is shocking, isn't it? Feels more like BlackRock wants more transparency and assurance, if BlackRock is really pushing this then they don't like the way that Coinbase have been acting.

Guys I think we should all be focused on Coinbase from now on, something could really go bad with Coinbase, if you have some BTC on this exchange it might be a good idea to move them out especially if you are not actively trading on the platform.

My advice doesn't end with Coinbase only though, stop leaving your coins on any centralised exchanges in general.

[C10H15N]

...stop leaving your coins on any centralised exchanges in general.

This never stops being true.  Not your keys, not your bitcoin.

[OmegaStarScream]

For some reason, I'm not that worried. I would be worried if this was concerning normal users but not in this case. With the Blackrock, and SEC involved into all of this. I can't imagine them even trying to pull such a move.

Regardless though, one should not store his funds for a long period of time in any exchange.

[adultcrypto]

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.

[DaveF]

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

[Pmalek]

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

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.

[Lucius]

~snip~
Guys I think we should all be focused on Coinbase from now on, something could really go bad with Coinbase, if you have some BTC on this exchange it might be a good idea to move them out especially if you are not actively trading on the platform.
My advice doesn't end with Coinbase only though, stop leaving your coins on any centralised exchanges in general.

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

[DeathAngel]

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.

[tranthidung]

Today it seems I might not be completely right, BlackRock now requires Coin base to deposit Bitcoin directly on-chain within 12hrs of instruction after concerns were been raised that Coinbase is selling "paper BTC" to ETFs.

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

Risk from management of that Bitcoin Spot ETF.
Risk from the custodial entity, here most Bitcoin Spot ETFs choose Coinbase.

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.

[asriloni]

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.

BlackRock is really pushing this then they don't like the way that Coinbase have been acting.

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

[mindrust]

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.

[Marvell1]

My advice doesn't end with Coinbase only though, stop leaving your coins on any centralised exchanges in general.

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.

[franky1]

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

[_act_]

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.

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.

[Agbe]

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.

[Fiatless]

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.

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.     

[EL MOHA]

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.

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

[uneng]

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.

[Peanutswar]

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.

[FinneysTrueVision]

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.