Today, Coinbase is holding over $100 billion in Bitcoin.
Coinbase has 9,480
BTC for their own company that is 1.31% of current marketcap or 0.045% of Bitcoin total supply (21M bitcoins).
https://bitcointreasuries.net/https://bitcointreasuries.net/entities/coinbaseBut they are holding more bitcoins as a custodian of many Bitcoin Spot ETFs.
https://blockworks.co/bitcoin-etfAnd then what?
Coinbase offers this vague promise on their website that they are
"partially insured", but does anybody know what that actually means? If they are hacked and the addresses get destroyed or stolen (we'd never know which), then... where would that leave Coinbase depositors?
The information officially on Coinbase website is like other companies. They won't guarantee that in incidents when their company, this case is Coinbase, got big problems, they will pay customers 100%.
With this information, if you dig deeper, Coinbase probably don't have their company treasury pegs as 1:1 in fiat currency:cryptocurrency. They are not a stable coin company and this 1:1 peg in treasury is not applicable to their company.
In case of a covered security event, we will endeavor to make you whole. However, total losses may exceed insurance recoveries so your funds may still be lost.
Yes, it's not safe to store your cryptocurrency on Coinbase or any custodian platform.
Reminder: do not keep your money in online accounts