LogicallyMinded on Nostr: As far as I understand #Coinbase reserves are audited quarterly. This leaves a lot of ...

As far as I understand #Coinbase reserves are audited quarterly. This leaves a lot of room for the commingling of #MSTR and #IBIT #bitcoin holdings with Coinbase users’ funds which could allow some degree of market manipulation. I would be happy to be shown that this type of manipulation isn’t possible but until proven otherwise, we have to consider this as a real possibility.

All speculations could be cleared by demonstrating proof of reserve and the rational provided by #Saylor to justify not doing so are weak at best.

quoting
note1w4a…3lqj

#Saylor was asked if #MSTR will ever show proof-of-reserve and Saylor replied that the reason #Strategy doesn’t show proof-of-reserve is for security reasons.

This answer raises more than an eyebrow. It’s unlikely that Saylor isn’t aware that he could prove MSTR’s #Bitcoin reserves in a private manner through zero-knowledge proofs. Maybe that’s not a service that #Coinbase is willing to provide but why not just say so in that case?

It seems to me that this response hides something bigger. I really only see two reasons as to why Startegy wouldn’t show proof for its #BTC holdings:

1) There are some accounting trickeries going on between Coinbase and their big institutional clients (#BlackRock, Strategy…). Maybe some form of paper Bitcoin or other tricks allowing them to manipulate the market.

2) Saylor knows, he will have to sell some BTC at some point and he doesn’t want the move to be broadcasted publically until officially announced.

What other reasons do you think of?

If Saylor is so concerned about the #privacy of its holdings maybe he just needs a #Monero.

https://xcancel.com/BitcoinMemesIRL/status/1927180295138103434