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A comment on Coinbase Drops Promise of Token’s Cash Backing That Wasn’t True. Parent comment

Re:Coinbase Drops Promise of Token’s Cash Backing That Wasn’... by nonameiguess on Wednesday August 11, 2021 @10:40AM (#28142557)
It's important to remember commercial paper tanked and almost took the global economy with it only 13 years ago. The only reason it's regarded as low risk, if you're AIG or Bank of America, is the US government has shown an extreme willingness to bail you out by buying them at face value even when they become worthless on the open market. The US government is extremely unlikely to bail out Coinbase.
[ Parent | on HN ]
Re:Coinbase Drops Promise of Token’s Cash Backing That Wasn’... by scarmig on Wednesday August 11, 2021 @11:17AM (#28143033)
> The US government is extremely unlikely to bail out Coinbase.

Part of Coinbase's implicit strategy is to become the "too big to fail" of the crypto space. And if its collapse would threaten to destabilize the broader financial system, the US gov absolutely would bail it out.

We've not reached that point yet (and hopefully never will), but it's important to understand the play here.

[ Parent | on HN ]