Industry heavyweights have urged crypto investors and traders to self-custody their crypto assets amid the significant market uncertainty brought on by the collapse of FTX.
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 via self-custody crypto wallets.
“Self custody is a fundamental human right. You are free to do it anytime. Just make sure you do do it right,” he said, recommending investors to start with small amounts in order to learn the technology and tooling first:
Self custody is a fundamental human right.
You are free to do it at any time.
Just make sure you do do it right.
Recommend start with small amounts to learn the tech/tools first.
Mistakes here can be very costly.
Stay #SAFU— CZ Binance (@cz_binance) November 13, 2022
Speaking to Cointelegraph during the Pacific Bitcoin conference on Nov. 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-custody, the custodians accumulate too much power and then they can abuse that power.”
“So self-custody is very valuable for this broad middle class, as it tends to create […] this power of checks and balances on every other actor in the system that causes them to be in continual competition to provide transparency and virtue,” he explained.
Backstage interview with the charming Michael @saylor ⚡️
✅ check @Cointelegraph to read his advice on how to handle the bear market
— Joe Nakamoto (@JoeNakamoto) November 11, 2022
Saylor also made the argument that self-custody plays an important role in maintaining the integrity and security of blockchains because it increases decentralization:
“If you can’t self-custody your coin, there’s no way to establish a decentralized network.”
The recent events that transpired last week appear to have already pushed many investors and traders towards self-custody solutions.
Since the sudden collapse of FTX in early November, the number of Bitcoin (BTC) withdrawals on centralized exchanges reached a 17-month high, according to on-chain analytics firm Glassnode:
#Bitcoin $BTC Number of Exchange Withdrawals (7d MA) just reached a 17-month…
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