Let’s just pile on…
With the full backing of the United States government, of course. nostr:note1337ldz3v3rtn8v08wuvul7xk5l6gzeeqrgtsv58zzz445nraa0aqaaesgw
Discussion
While I would not be surprised if this was happening, I would probably wait for some actual evidence or analysis before floating this out as a “rumor”.
The accusation / hypothesis is Coinbase is a fully legitimized FTX.
How does this trade/scheme get blow’d up? Since purchases are made using cash and redemptions are cash, how can we prove this is happening with on-chain analytics?
I’m aware of how a fractional reserve system works and the propensity a Coinbase may have to do it. As you note yourself, it’s basically impossible to figure out unless you get someone inside the company telling you they are doing it. Hence my warning of actually having some evidence other than, “it’s possible for them to do”. We all know this, and it’s why the ETF is a terrible purchase.