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by toomuchtodo 3113 days ago
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.
1 comments
dmurray 3113 days ago
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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toomuchtodo 3113 days ago
Who is backing Coinbase in the event of insolvency due to a clearing or settlement anomaly?
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