Are Coinbase insolvent?

Discussion in 'General Bitcoin Gambling Discussion' started by Gooch, Oct 19, 2016.

  1. Gooch

    Gooch Member

    Circle.com recently closed my account because I made a few bitcoin deposits to a sportsbook so I've switched over to Coinbase now. I've read a few disturbing rumours that Coinbase is insolvent so I'm a little worried about using their service.

    Can anyone tell me if Coinbase is going to shut-down soon?
     
  2. Wonka

    Wonka Member

    I think Coinbase are going to go bankrupt soon. They haven't paid back ETC to their customers in over 4 months even though every other exchange did it in a couple of weeks. Brian Armstrong said they only lost $40,000 through the relay attacks but I'm finding that harder and harder to believe.
     
  3. Freddy

    Freddy Member

    I refuse to use Coinbase because their CEO, Brian Armstrong, has twice tried to hijack bitcoin. First time with Mike Hearn's XT and then with Gavin Andresen's Bitcoin Classic. The sooner that moron leaves the space the better.
     
  4. Humble Servant

    Humble Servant Active Member Staff Member

  5. Pony

    Pony Member

    While they may not be insolvent yet, they certainly are over invested. They've taken over $100 million in VC money, which they'll never be able to payback. The only exit strategy open to Brian Armstrong and Co. is to find a greater fool to buy the company.
     
  6. Humble Servant

    Humble Servant Active Member Staff Member

    Coinbase may be running out of money but they are also an extremely popular bitcoin wallet. Looks at these figures from the past couple of months. Pretty impressive.

     
  7. 2damoon

    2damoon Member

    WOW, that's crazy impressive growth. It looks like bitcoin might finally becoming mainstream.
     
  8. Humble Servant

    Humble Servant Active Member Staff Member

    They may be running out of money but they're certainly not running out of customers....

     
  9. Freddy

    Freddy Member

    They are looking for fresh investors in this new funding round so I guess they're running out of money. I would love to know how much their GDAX trading platform is making. Certainly not enough to pay back the hundreds of millions of dollars that have already gone into the company.

     
  10. 4TheWin

    4TheWin Member

    They might not be making money but they sure as hell aren't having problems attracting new customers. They just announced they've signed up their 10,000,00 the users and they're averaging about 33,000 new signups each month now.
     
  11. Jake21

    Jake21 Member

    trace mayer was questioning whether they were running a fractional reserve today. hold your own private keys...

     
  12. Humble Servant

    Humble Servant Active Member Staff Member

    Some pretty big names in the bitcoin development community like Peter Todd are questioning whether Coinbase have enough bitcoin to pay their customers. I would recommend not using Coinbase for cold storage of large amounts until more we get more clarity around this issue...

     
  13. PokerGod

    PokerGod Member

    do coinbase ever allow independent audits? i've read that they control about 10% of all the available bitcoin so it would be good if there was a little bit of transparency.
     
  14. uglymug

    uglymug Member

    They might not be insolvent but they're definitely not profitable. Coinbase used to be a very conservative exchange that basically only sold bitcoin on their exchange. Now they've turned into a shitcoin and ICO token exchange. They sell Tron, Zcash, XRP Ripple, Stellar Lumens, Basic Attention Token BAT, Ethereum Classic and bunch of other no hopers.

    I think they are doing this because they are making very little money during the bear market and they are desperate to increase revenue. There are probably lots of Silicon Valley investors breathing down Brian Armstrongs neck.
     

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