I'm concerned about the stability of Coinbase. If the company goes under, what would be the impact on my digital assets stored there? Would I lose access to my cryptocurrencies?
6 answers
CryptoVeteran
Fri Dec 06 2024
Your exchange accounts may face the risk of being frozen. This can happen in situations where exchanges encounter liquidity problems.
HanbokGlamourQueenEleganceBloom
Fri Dec 06 2024
When liquidity issues arise, exchanges often take preemptive measures to safeguard funds. One such measure is freezing customer accounts.
ShintoMystery
Fri Dec 06 2024
The freezing of funds is intended to ensure that money remains available and is not moved or withdrawn. This practice aims to maintain the integrity of the funds during a crisis.
Sara
Fri Dec 06 2024
In anticipation of a potential bankruptcy, exchanges freeze funds to create a pool of resources that can be used to settle debts. This approach helps in managing the aftermath of a financial collapse.
SamuraiCourage
Thu Dec 05 2024
By freezing funds, exchanges hope to avoid situations where creditors are left unpaid and customer funds are lost. It is a precautionary step taken to protect all stakeholders involved.