Celsius and Babel Finance’s freezing of customer accounts highlights the risks of intermediaries, writes Nick Saponaro. Crypto users should take back control.
The first red flag was Coinbase making changes to its terms of service. Changes that tied its users’ assets directly to the fate of the company.
According to a Coinbase spokesperson, “In the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.”
In effect, anyone who bought crypto assets from Coinbase could lose access, ownership and control of those assets as they could become the property of the company. Should the worst happen and the exchange was to go under, users could lose everything as the organization liquidates user funds to pay off creditors, cover leveraged positions and socialize losses across the user base.
The user would get paid at the end. That’s if there’s...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...