November 16, 2022

Coinbits is 100% full reserve

The fall of another crypto casino caused us to reflect on the blessing of bitcoin.

Dave Birnbaum
Dave Birnbaum

Director of Product

Coinbits is 100% full reserve

Table of contents

Coinbits is 100% full reserve

Until three days ago, cryptocurrency exchange FTX was one of the most respected firms in the industry. After reaching a $32 billion valuation, FTX bailed out an embattled BlockFi and made a bid to purchase Voyager, another defunct exchange.

FTX founder Sam Bankman Fried appeared on magazine covers while the firm acquired the naming rights to a professional sporting arena in Miami.

Then, in 48 hours, everything fell apart. Reports began circulating that FTX was insolvent. This immediately prompted users to withdraw funds and dump FTX’s token, FTT,  forcing a liquidity crisis and beginning a vicious cycle. FTX stopped letting people withdraw their crypto, and unless Binance, another exchange, acquires the firm, users might never see their funds.

The moral is this: Your savings can disappear from exchanges in mere moments.

At Coinbits, we don’t mess around with crypto tokens, and we do not lend out the funds of our members. Your bitcoin is yours, and it is fully reserved. When you’re ready to take custody of your bitcoin, we encourage you to do so.

We know how much your savings mean to you; it's what drives us to work with a laser focus on building the best tools for building wealth with bitcoin.

The fall of another crypto casino caused us to reflect on the blessing of bitcoin. We at Coinbits do what we do to help you avoid risky exchanges – and secure your savings for the future.

November 9, 2022

Coinbits is 100% full reserve

The fall of another crypto casino caused us to reflect on the blessing of bitcoin.

Dave Birnbaum
Dave Birnbaum

Director of Product

Coinbits is 100% full reserve

Until three days ago, cryptocurrency exchange FTX was one of the most respected firms in the industry. After reaching a $32 billion valuation, FTX bailed out an embattled BlockFi and made a bid to purchase Voyager, another defunct exchange.

FTX founder Sam Bankman Fried appeared on magazine covers while the firm acquired the naming rights to a professional sporting arena in Miami.

Then, in 48 hours, everything fell apart. Reports began circulating that FTX was insolvent. This immediately prompted users to withdraw funds and dump FTX’s token, FTT,  forcing a liquidity crisis and beginning a vicious cycle. FTX stopped letting people withdraw their crypto, and unless Binance, another exchange, acquires the firm, users might never see their funds.

The moral is this: Your savings can disappear from exchanges in mere moments.

At Coinbits, we don’t mess around with crypto tokens, and we do not lend out the funds of our members. Your bitcoin is yours, and it is fully reserved. When you’re ready to take custody of your bitcoin, we encourage you to do so.

We know how much your savings mean to you; it's what drives us to work with a laser focus on building the best tools for building wealth with bitcoin.

The fall of another crypto casino caused us to reflect on the blessing of bitcoin. We at Coinbits do what we do to help you avoid risky exchanges – and secure your savings for the future.