[______-_-______]

https://nitter.net/brian_armstrong/status/152423348004071014...

In other words: We only disclosed these risk factors because we were legally required to. Please ignore our SEC disclosure and half-billion dollar quarterly loss, and instead trust my unregulated statements posted on Twitter. There are no risk factors, your money is safe, the music will never stop.

[oefrha]

I get the point, but please don’t use a block quote when it’s not a quote.

Two problems: 1. People don’t read the source. 2. People can’t detect subtle or not-so-subtle cues.

Case in point: there’s already a sibling discussing “There are no risk factors” as if it’s actually a quote from Brian Armstrong.

[pc86]

Ok here are some actual quotes then:

"We have no risk of bankruptcy" - objectively false statement

"it is possible, however unlikely, that a court would decide to consider customer assets as part of the company in bankruptcy proceedings" - goes against the entire point of his thread, and is also exactly why this disclosure was required

The quote above seems like a completely accurate and fair characterization.

[______-_-______]

You make valid points. I edited my post.

[dj_mc_merlin]

I would argue that's the people's problem. How important is what they have to say anyway if they won't read the source and can't detect sarcasm?

edit: also, even if it's not a direct quote.. c'mon, it is what he's saying. The SEC made a rule that applies _specifically for crypto companies_, saying they have to disclose that crypto assets under their custody could potentially be taken in a bankruptcy.. and this guy goes on to say what he was just forced to disclose is not true. It doesn't get more obvious.

[maccard]

I don't have skin in the game (not a crypto fan, not in the US and not an investor in coinbase), but I don't think your sarcasm is warranted here (side note for any other readers, that's _not_ what his linked thread says).

Regulatory capture is _real_, and dispraportionately favours incumbents. As regulations are tightened on crypto in general, firms that are not involved in the creation of said regulations are going to find themselves on the wrong side of the law. Furthermore, if _any_ organization has a reputation of taking sides, it's the SEC.

[duxup]

I don't think regulatory capture is the issue here. We're talking about a disclosure of risks ... that seems reasonable to me.

Dude says there is no risk of bankruptcy and is predicting court case outcomes... and it is clearly in his financial interest to make the arguments he is making.

The system is rigged and other truthy arguments are all but standard operating procedure for whatever crytpo idea someone comes up with. Those arguments doesn't make mean we shouldn't be skeptical.

[gonzo41]

The thing with crypto is its just reinventing money and all the same crap over. Right now it's like banking in the 1820's with no parachute.

Crypto isn't living up to it's PR an I don't really understand why people can't see its flaws.

[junon]

This is not a direct quote, please don't use blockquotes. It's disingenuous.

[p49k]

It’s a direct quote from the 2nd tweet in his thread.

[raverbashing]

> 3. We believe our Prime and Custody customers have strong legal protections in their terms of service that protects their assets, even in a black swan event like this

> 4. For our retail customers, we’re taking further steps to update our user terms such that we offer the same protections to those customers in a black swan event. We should have had these in place previously, so let me apologize for that.

> 5. ...and it is possible, however unlikely, that a court would decide to consider customer assets as part of the company in bankruptcy proceeding

The term people might want to google is "bail-in". And it is likely that Coinbase has less protections related to that than a conventional bank.

[duxup]

Somehow that’s even less comforting….

But I suppose that’s the rabbit hole crypto fans go down.

[gennarro]

“There are no risk factors” doesn’t inspire much confidence in me, even if this specific situation isn’t of much concern to Coinbase management.