Posts about Coinbase
At the time of writing this, Curve 3pool USDT reserve is completely drained as a result of massive USDC selloff:
https://i.redd.it/tj791ftri1na1.png[UPDATE] Curve 3pool is now almost all USDC:
https://i.redd.it/fniv8j1it2na1.pngOnly a few hours ago, the liquidity was pretty balanced, though you could see the trend starting:
https://i.redd.it/gon1xj72j1na1.pngToken has slightly depgged and trading at $0.93 on Uniswap:
https://i.redd.it/nvzh0avmh1na1.pngCoinbase, who has a big stake in Circle (issuer) and has been promoting it for a long time with zero fees, just tweeted this:
https://i.redd.it/xmletoiph1na1.pngThis means no one can sell their coin over the weekend at least. They have the nerve to act like banks being closed on the weekends is a new thing. Obviously Coinbase is afraid of the massive selloff that has already started as result of Silicon Valley Bank and Silvergate Bank going down. Circle held a massive cash reserve in both and failed to withdraw at least a portion of it from SVB:
https://i.redd.it/wmq6yyt3i1na1.pngAt the time of writing this, both DAI and USD Coin have depegged. If you have liquidity pools with it, expect people to drain your other token and leave you with 100% USDC in your pool. The depegging will get worse since all the liquidity is being drained. Though it is not the first time its depegged, in the middle of all the banks going down, it seems more serious than before. Stay safe and may the market survive this weekend!
I am absolutely beside myself with worry. I have about $20k in USDC on my Coinbase and there is a family emergency in progress and long story short, I REALLY need that money. I feel physically sick thinking about what might happen next.
I wasn't paying attention to the news at all and just noticed what was up an hour ago when I tried to sell my USDC to cash out.
Is this going to be another Luna episode or am I over reacting? This literally could not have come at a worse time as far as I'm concerned.
Also, what time do the markets open tomorrow? I want to just jump in and take this out straight away.
Thank you for any advice.
Update: A big thank you to r/irockalltherocks for telling me to use the Advanced Trade functionality to sell my USDC. I was able to convert to Euros and have learned an extremely valuable lesson here today. Honestly I'm still shaking, thank you everyone for all your advice.
Coinbase tweeted earlier that USDC to USD conversions have been reinstated and are now operating as normal.
https://twitter.com/coinbase/status/1635276541545566215
https://i.redd.it/n4r9c311mina1.pngUSDC is redeemable for 1 USD but the user has to convert manually on the app or site.
USDC has also repegged on most DEX's
some users have not been able to get the conversion to work on the coinbase app but it seems to be working on the website.
It appears the USDC depeg fears are over for now and the safest stable is back to being the safest stable.
Did this experience change the Stable coin you trust to use the most?
Staking as a Service is when exchanges or other 3rd parties take your crypto and stake it on your behalf. They take a commission and award you a cut or your staking profits. This is incredibly attractive to a CEX as it essentially allows them to generate yield with no risk to themselves by using the funds of users to stake.
Edit2:
Staking as a Service is a great thing for Coinbase, so much so - they automatically stake your eligible assets in order to earn yield, without you having to do anything.
https://help.coinbase.com/en/coinbase/trading-and-funding/coinbase-earn/rewards#how-do-i-earn-rewards-on-coinbase?End of Edit 2.
On the surface this seems incredibly simple and easy to understand, but it can go wrong in a lot of ways. If it does these exchanges are often not responsible to restore any lost funds of their users.
The company could take your Crypto and not stake it and try to generate yield in other ways.
They could lend it out to someone else. (FTX), (Gemini Earn), (Celsius)
They could trade against the market with it. (FTX),
They could Co-Mingle it with their own funds and use it for their business. (FTX)
The SEC created a video that briefly describes the potential problems above that could arise from staking as a service.
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The SEC is coming after companies that offer staking as a service and forcing them to provide important disclosures to their clients and provide more consumer protections. They are not coming after Staking, just companies that profit off of users funds via Staking as a Service. This is scary for Coinbase as per the Coinbase TOS they receive a commission out of your yield.
Unless otherwise specified, the “staking rewards rate” disclosed by Coinbase for a particular Supported Digital Asset is an annualized historical rate based on the staking rewards generated by Coinbase in providing staking services to Coinbase customers for that Supported Digital Asset, minus our commission. This rate is an estimate and may change over time.
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Yes this is especially rough for users with staked ETH as it requires 32 ETH nearly $50K to stake - that makes staking at an Exchange with any amount of ETH incredibly attractive. However there are decentralized options like Rocket Pool to stake your ETH that doesn't require such a large upfront cost.
EDIT: It's not clear if a Decentralized option like Rocket Pool could be targeted later, that would be a huge hit to ETH Staking if that hypothetical happened.
The biggest hurt will be directed at exchanges who up to now have been profiting off of their users funds with no risk to themselves. Staking isn't under attack by the SEC, just Staking as a Service. This SEC action will ironically help to make Crypto more decentralized as it forces staked crypto out of CEX in order for users to continue earning rewards.
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TLDR: Staking as a service is under the scope of the SEC, it doesn't hurt anyone "unless you're Brian Armstrong the CEO of Coinbase and up to now your company has been making lots of money off your users funds with no oversight or protections - and no risk to your own funds". Taking away staking from exchanges is actually good for decentralization as it will force crypto out of CEX's in order to continue earning rewards.