Oddbean

Coinbase is selling paper bitcoin to Blackrock and all of the ETFs it custodies. Rehypothecation is occuring from bitcoin they owe to their retail customers holding on their exchange. This range is Coinbase selling the tops and buying the dips to capture the spread to acquire the bitcoin they don’t actually have to the etfs at a later date. If this doesn’t blow up in their face, they’ll continue to manipulate the market with this strategy. #🌝

Check the block chain. There’s no proper coin movement. Read the prospectus, there’s intentionally up to between 2-30 days before settlement is required. Coinbase is both custodian as well as tasked with acquiring the bitcoin. We don’t stop or fix it, the only thing stopping this train is a Coinbase blow up.

If Coinbase is doing this, it's the next FTX - eventually. I doubt this is occurring because, one it's illegal, and two you will eventually figure it out because at some point the Bitcoin on the books won't match the on chain data. There is no way to cheat the next block in Bitcoin. So once it's written, you have to live by it. You may cheat people but the Bitcoin system itself can't be manipulated so you will eventually be discovered - either through default or someone finding out and lose your credibility. The CURRENT banking system cyclically fails and the Fed/system steps in and bails everyone out. That ain't happin' with #Bitcoin. Chill - use ONLY cold storage to keep your Bitcoin safe. And let the Charlatans do their thing so we can clear them out over time.

The bitcoin on the books already doesn’t match the on chain data. Settlement all happens in cash which can paper over the lack of bitcoin. Everyone doubts it’s happening but everyone doubted FTX was insolvent as well. The only solution is for people to store their coins in cold storage to make the data obvious to even the biggest excusers.

I have seen no verifiable data suggesting what you are stating. But as I said, if they are cooking the books, #Bitcoin will eventually reveal the foul play. You can't change #Bitcoin's code. We 100% agree, not your keys, not your coins.

Not to beat a dead horse here, but you are implying someone is breaking the law. All I'm suggesting is this: It does NOT matter. If they are toying with #Bitcoin they will be discovered eventually. ALL times you use a third party for something there is a certain amount of TRUST involved. Unfortunately that's the problem with laws and humans. Humans respond to situations REGARDLESS of the law to self preserve. Bitcoin fixes this problem of trust. Why people will eventually all be using Bitcoin and the Coinbases of the world will eventually move to Level 2 application where machines hard link to Bitcoin to eliminate the 3rd party trust problem. Or likely go out of business if they screw up as you suggest. So we are arguing over something that really does not matter. NEVER buy Bitcoin in an ETF. ALWAYS buy Bitcoin and move it to cold storage every few grand (or whatever you are comfortable with). Strike.me allows you to do that free.