Before ‘investing’ in a Cryptoexchange like Coinbase, Upbit or Gemini, have you ever paused 🛑 and read the User Agreement? What if these exchanges went insolvent?
It’s not like the average Joe Bloggs can change the agreement … but JB can pick and choose which exchange to use.
Let’s take the above 3 as examples (out of the many thousands): 👇👇
1. Coinbase – if it decides to keep JB’s Crypto Assets on separate ledgers, then he may own the asset. If they don’t, then JB may have an expensive day in court
2. Upbit – Crypto Assets may be owned by JB, subject to the solvency of Singaporean banks.
3. Gemini – Crypto Assets may be held on trust by it, with JB as beneficiary.
As you can see, JB’s ownership rights may vary significantly in the event of insolvency, just by the #cryptocurrency exchange you choose 😳
If you want to find out more, I wrote an awesome (humble-brag) post on this yesterday. Check out:
#blockchain #svvoidables #bitcoin