Changpeng Zhao, Michael Saylor Hail Self Custody for Crypto Post FTX Fiasco

Because of how the FTX debacle unfolded and left investors high and dry, sentiment around the crypto market has clearly turned sour as investors pull their money out of digital assets. Under the circumstances, industry leaders have restored the value of crypto assets. In a recent tweet, Binance CEO Changpeng Zhao called self-restraint a ‘basic human right’. Michael Saylor, CEO of MicroStrategy has also advised crypto investors to take control of their assets.

Zhao recommended members of the crypto community to start keeping a small amount of assets to understand how the tools and technology of holding them work.

Bitcoin has fallen sharply in the year after Sam Bankman-Fried’s FTX crypto exchange lost its standing due to liquidity and solvency problems.

Amid the market turmoil, Binance-owned Trust Wallet has recorded an increase in investors.

Acquired by Binance in 2018, Trust Wallet is a hot wallet service, allowing people to store their cryptocurrencies and NFTs. Hot wallets are accessible online and facilitate crypto transactions between their owners and end users through a set of private keys stored inside.

In recent days, Trust Wallet Token has surged 80 percent to touch a price point of $2.3 (roughly Rs. 185), a Coindesk report noted.

At least $1 billion (approx. Rs. 8,113 crore) of client funds it is reported that It disappeared in the fall of the crypto exchange FTX.

So it is expected that the concept of ‘not your keys, not your coins’ will become a concept that is understood and followed in the crypto world following the FTX fiasco.

To put it in simple terms, it means that if investors don’t have control over their private keys, then they don’t actually ‘own’ their crypto. With custodial wallets, users do not rely on any crypto exchange or wallet provider to store their private keys in their systems, making them vulnerable to hackers or liquidity crunches.

Previously, Ledger, a French hardware crypto wallet company, also said that it is trying to inform as many people as possible, about the use of private and private crypto wallets.

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