CZ and Saylor Urge Crypto Self-Custody Amid Growing Uncertainty

CZ and Saylor Urge Crypto Self-Custody Amid Growing Uncertainty

Industry heavyweights have urged crypto investors and traders to keep their crypto assets to themselves amid significant market uncertainty caused by the FTX collapse.

In a Nov. 13 tweet to his 7.6 million followers, Binance CEO Changpeng “CZ” Zhao pushed the crypto community to store their own crypto through self-custodial crypto wallets.

“Personal custody is a basic human right. You are free to do so at any time. Just make sure you do it right,” he said, recommending investors start with small amounts in order to learn the technology and tooling first:

Speaking to Cointelegraph at the Pacific Bitcoin conference on November 10-11, MicroStrategy Executive Chairman Michael Saylor also discussed the merits of self-custody given the current market environment.

Saylor suggested that self-custody not only provides investors with property rights, it also prevents powerful actors from corrupting the network and its participants:

“In systems where there is no self-guard, guardians accumulate too much power and can then abuse that power.”

“So self-care is very valuable to this broad middle class, because it tends to create […] this power of checks and balances on all the other players in the system that causes them to be in continuous competition to ensure transparency and virtue,” he explained.

Saylor also argued that self-custody plays an important role in maintaining the integrity and security of blockchains because it increases decentralization:

“If you can’t hold your coin yourself, there’s no way to establish a decentralized network.”

The recent events of the past week appear to have already pushed many investors and traders towards self-custody solutions.

Since FTX’s sudden collapse in early November, the number of Bitcoin (BTC) withdrawals on centralized exchanges has reached a 17-month high, according to on-chain analytics firm Glassnode:

While at the same time, net inflows into self-custody portfolios soared.

Smart contract wallet Safe – formerly Gnosis Safe – has reported over $800 million in net inflows since last Tuesday, when the FTX saga started spiraling out of control:

The exit from centralized exchanges caused by the collapse of FTX also created problems for hardware-based cryptocurrency wallet provider Ledger, which was temporarily unable to process a massive influx of inflows. due to scalability issues.

The self-custody wallet token acquired by Binance Trust Wallet (TWT) also rose 84% to $2.19 in the past 48 hours before cooling down to $1.83, according to CoinGecko.

The token allows token holders to participate in deciding how the wallet operates and what technical updates to perform.

Related: Self-custody is essential in extreme market conditions: here’s what the experts say

Investor confidence in centralized exchanges took another hit on Nov. 13 when Crypto.com accidentally sent 320,000 ETH to Gate.io.

Bull Ethereum and Daily Gwei host Anthony Sassano on November 13 called on the crypto exchange on his mistake and later declared that investors should not store assets on centralized exchanges “longer than necessary”.

Meanwhile, Blockchain Association Chief Policy Officer Jake Chervinsky said that self-care education should be one of the first things newcomers learn, while Bitcoin proponent Dan Held told his 642,800 Twitter followers that self-care is a crucial element of self-sovereignty: