But Coinbase does it protect deposits like a bank?

[cryptoenthusiast]

No. Unlike traditional banks, Coinbase does not offer deposit insurance or legally guarantee reimbursement if hackers drain your account. Critics call it an “inverted bank” — surveillance without safeguards.

[EmTeam]

Without deposit insurance, Coinbase customers face risks banks would normally cover.

[Nahid Hossen]

The “inverted bank” label fits—heavy surveillance but little real protection for users.