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It can't happen to Coinbase, they're doing it right with 98% of funds in cold storage[1] and they allowed an outside security audit to prove it.

[1] http://antonopoulos.com/2014/02/25/coinbase-review/



I'm hoping for an actually independent security audit, because antonopolous, despite competing with CoinBase, has a stake in the entire nascent system being considered trustworthy, and therefore a conflict of interest. I'm not saying he wasn't telling the truth - I believe what he says about verifying that CoinBase was in control of its cold storage wallets - but I'm hoping that independent banking authorities can learn enough about BitCoin to conduct independent audits themselves, so that people who have no skin in the game can truly verify that CoinBase's cold storage procedures are adequate.




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