"Coinbase is insured against theft and hacking in an amount that exceeds the average value of bitcoin we hold in online storage at any given time."
Yet elsewhere you claim that only 3% of deposits are online, so 97% of deposited bitcoin are uninsured.
Are we supposed to pretend that the 97% offline have zero risk of theft? If that was true why aren't those 97% insured also?
Wow. Sneaky.
I think the idea is that the hot wallets are the ones that are most at risk. By insuring them, you decrease the risk of a financial loss if something happened to them.
Of course, there's always a risk that the insurer will be insolvent when it comes time to pay the claim. You can attempt to re-insure your way out of that, but at the end of the day, there will always be some risk.