Due to the recent fall for FTX, there is a lot of FUD ongoing. Users are no longer trusting crypto exchanges. Now, more than ever, crypto influencers are trying to educate the community regarding the best practices to ensure security.
Changpeng Zhao, CEO of Binance, urged the need for self-custody. He went on to say that everyone has the right to self-custody. Furthermore, CZ states that users have to make sure to know how things work if they use centralized exchanges.
Similar to CZ, Michael Saylor, executive chairman of MicroStrategy, showed his stance regarding the current state of the market as well as the need for self-custody.
According to Saylor, self-custody is the key way of preventing bad actors from corrupting networks and misusing users’ funds.
Saylor also made sure to highlight the fact that self-custody makes sure that there is decentralization. Decentralization, of course, remains the core of cryptocurrencies.
Saylor, however, acknowledges that these recent events have been extremely painful for many investors. Nonetheless, Saylor believes that they are at least learning to trust only self-custody means of storing cryptocurrencies.
Chain of Events Following FTX Crash
These recent events regarding FTX have largely affected the market, with millions of dollars worth of cryptocurrencies being withdrawn from users amidst panic.
The FTX crash led to a domino effect on other exchanges too. Users are learning the truth about these centralized exchanges as time is going by.
Due to the large withdrawals from crypto exchanges, even self-custody wallets such as Ledger faced temporary issues. Ledger was temporarily not able to record all the inflows from users due to the massive amount of deposits at the same time. Other centralized exchanges are also now facing liquidity issues due to the large withdrawals.
Other than that, Crypto.com is receiving backlash after reportedly sending $400 million worth of crypto to Gate.io, right before the latter shared its proof-of-reserves. Hence, now more than ever, people are emphasizing the need for self-custody.