Glad to see at least a few people highlighting Coinbase custody concentration with public companies and the ETFs. Seems obvious that this invites at best risk of loss due to Coinbase negligence or data breach and at worst fractional / fictional reserves that would soak up demand and artificially suppress price.

I know nostr:npub15dqlghlewk84wz3pkqqvzl2w2w36f97g89ljds8x6c094nlu02vqjllm5m certainly must have considered this and lack of viable options must be the reason. But why not start a public pressure campaign for more transparency regarding audits for on-chain reserves and matching regarding liabilities? Even if you believe Coinbase is a good actor, this is a reasonable demand.

As for me, I can’t help but always come back to how quickly the SEC pivoted (I know the courts initiated this) and how easily Coinbase would be subject to regulatory capture as a huge, public company. It just makes too much sense, and we know the current administration hates Bitcoin.