Few weeks ago coinbase’s report made people re-evaluate their decisions with centralized exchanges. You must have seen the news somewhere, but if you haven’t, I will tell you, don’t worry about it, that’s why I am here.
Did you know that according to that report, coinbase can own your assets if they ever go bankrupt. Yep!! So while you are putting your life savings on centralized exchanges be careful because if anything happens to the exchange, they might claim that they own your asset now and there is nothing you can do because it must have been in their terms and conditions. How many of us read the terms and condition of the crypto exchange platform we were registering on before clicking on the Accept Terms & Conditions option. Yeah, me too, I didn’t read. Who has time for that when it’s extremely long.
Your Funds Might Not Be Safe
Coinbase claimed that, the statement of owning your assets should incase they go bankrupt was just a statement made for the SEC documentation.
During an AMA section, CZ Binance was asked about customers’ fund if Binance goes bankrupt, he assured that customers funds are safe as they would be refunded if Binance goes bankrupt even before shareholders get a refund. This might sound like a relief to customers but do you still trust centralized exchanges, is this enough reason to just sit down and leave your money on centralized exchanges?
There is an amount of value your assets will attain that leaving them on centralized exchanges is a risk, you can’t take that risk. There are better ways to keep your assets and safe guard them which is through cold wallets, you can only use centralized exchanges to buy coins.
I don’t have any cold wallet yet, but I am looking forward to getting one, i don’t have 5 to 6 figures worth of crypto coins, that is why I am ready to risk some of them in a DEX hot wallet. This is because of the yielding nature of some of my assets. But it’s becoming a scary game right now as crypto adoption is gradually growing, if you are looking for a reason to have your crypto in cold storage think of the Mt.Gox customers who have had their bitcoin held for over 5 years because, the crypto exchange was hacked. If they had their assets in a cold storage, most of them won’t be in that position right now.
So Getting a cold storage is way better than getting words of assurance from these crypto exchange CEOs.
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He might say it but what is in the terms and conditions.
Coinbase is going to make user funds part of the bankruptcy proceeding if it were to happen. That means they would not be refunded but users would have to fight in court like any other creditor.
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What a risk, it’s not worth it all, getting a cold storage is way better
Posted Using LeoFinance Beta