Is Coinbase at risk in the event of bankruptcy?
Coinbase's quarterly results highlighted a risk that may apply to other crypto exchanges too: Customer funds could be at risk in the event of bankruptcy. Assets held in a custodial wallet on Coinbase's platform could be subject to bankruptcy proceedings. Moving assets to a non-custodial crypto wallet gives you complete control over your assets.
Will Coinbase go bust?
Like many crypto platforms, Coinbase offers a custodial wallet service. This lets users leave their digital assets on the exchange rather than moving them to an external crypto wallet. However, according to the Coinbase filing, if the company goes bust those assets could be subject to bankruptcy proceedings.
What happens if Coinbase debt exceeds its own assets?
This means that if Coinbase's debt exceeds the value of the company's own assets, money would be taken from the customer pool to cover the difference. Only once this is done will customers be able to claim to get their money back.
What is Coinbase wallet?
The Coinbase Wallet is a Self Custody Wallet. If you have your seed you can take that seed to ANY Self Custody Wallet platform and access your crypto. Thats what im trying to understand. If for example Coinbase goes bankrupt the webpage is down that wont cut access to my funds?
