I’ve seen some misinformation spreading on Coinbase staking/FDIC protection for ETH2.0 that needs to be addressed.

Please don’t take advice from just anyone on the internet. Please do your own due dilligence. I’ve seen some individuals asking about the risks of staking on Coinbase and individuals “clarifying.” Lets start by actually clarifying the risk of staking on Coinbase.

From Coinbase:

Are there risks staking ETH?

Staking can be rewarding, but it also comes with the risk of loss of principal funds if the validator duties are not met. However, Coinbase will cover these risks (at no extra costs) so your principal is safe.

Coinbase cannot guarantee that the upgrade to the Ethereum network will be successful and is not responsible for any staked ETH lost due to an unsuccessful network upgrade or other factors not within our control. For more information on risks associated with ETH staking, please read section 5.4.4 of our User Agreement.

Lets read the User Agreement, for those who read the first paragraph and went, “see, its covered!”

User Agreement:

5.4.3 No Guarantee of Rewards. COINBASE DOES NOT GUARANTEE THAT YOU WILL RECEIVE STAKING REWARDS, ANY SPECIFIC STAKING REWARD, OR ANY STAKING RETURN OVER TIME, INCLUDING THE STAKING REWARDS RATES. (Apologies for the caps, this is how it is worded on the agreement).

(c) No Guarantee of Success of Network Upgrade. Coinbase makes no guarantees that the upgrade to the Ethereum network will be successful, and you understand that if the network upgrade ultimately fails, you may lose all, or a portion of, your staked ETH. Coinbase will not be responsible for any ETH lost due to a network upgrade failure.

What about FDIC protection?

2.6.3 Acknowledgement of Risk. You acknowledge that Digital Currency is not subject to protections or insurance provided by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation.

ONLY your USD is insured. Your crypto is NOT insured whatsoever on Coinbase.

Please invest wisely. Anyone can come on and say, “oh they just have to say that,” or, “there’s no way the upgrade would fail,” or, “they’re too big to fall.” Facts are facts, they’re not liable for your risk.