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A comment on Ask HN: How can Coinbase make good on deposits/withdrawals?. Parent comment

Re:Ask HN: How can Coinbase make good on deposits/withdrawals? by jaderobbins1 on Thursday December 07, 2017 @12:39PM (#15872071)
I think this is also a basic concept of the stock market that many people don't understand as well.
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Re:Ask HN: How can Coinbase make good on deposits/withdrawals? by toomuchtodo on Thursday December 07, 2017 @05:39PM (#15875048)
In the stock market, there exists counterparty risk mitigation; in the event your counterparty is insolvent at the time clearing/settlement occurs, your trade will be made whole by a clearing/settlement corp.

No such guarantee exists with cryptocurrencies.

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Re:Ask HN: How can Coinbase make good on deposits/withdrawals? by dmurray on Thursday December 07, 2017 @07:33PM (#15875702)
What? Coinbase and other exchanges go a step further than that, and require the counterparty to have deposited 100% of what they will deliver to you up front. So you will be made whole unless the exchange itself steals your money or gets hacked.
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Re:Ask HN: How can Coinbase make good on deposits/withdrawals? by toomuchtodo on Thursday December 07, 2017 @08:37PM (#15876026)
Who is backing Coinbase in the event of insolvency due to a clearing or settlement anomaly?
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