"Coinbase is insured against hacking, internal theft, and accidental loss in an amount that covers maximum value of bitcoin we hold in online storage at any given time."
"Coinbase is insured against employee theft and hacking in an amount that exceeds the average value of online bitcoin it holds at any given time."
Those statements seem mostly consistent to me. The only question is whether the insurance is always more than is in their hot wallet, or exceeds the value on "average" (whatever that means).
I suspect it would be difficult to guarantee the insurance would always exceed the value of online bitcoins, perhaps because the insurance is issued on the USD value and prices can fluctuate wildly, or perhaps because they can't predict when large deposits will be made (though I'm unsure if deposits go directly to hot or cold wallets)
I got confused between what kinds of losses the insurance covers versus how much it covers. Details in the reply to your sibling comment. I see what it means now.
"Coinbase is insured against employee theft and hacking in an amount that exceeds the average value of online bitcoin it holds at any given time."
Those statements seem mostly consistent to me. The only question is whether the insurance is always more than is in their hot wallet, or exceeds the value on "average" (whatever that means).
I suspect it would be difficult to guarantee the insurance would always exceed the value of online bitcoins, perhaps because the insurance is issued on the USD value and prices can fluctuate wildly, or perhaps because they can't predict when large deposits will be made (though I'm unsure if deposits go directly to hot or cold wallets)