The Shocking Truth: Only 1% of People are Using Crypto Custody!
It was cautioned by Binance CEO Changpeng “CZ” that 99% of people who want to take hold of their crypto will lose it anyways. Hence it’s been a year, and “CZ” no doubt supports self-custody; for him, it is a fundamental right of humans. But he has also urged us to do crypto properly. In February 2020, he published “CZs tips” based on self-storing crypto.
On December 14, during a Binance-run Twitter, the CEO of Binance “CZ” continued to caution the users of self-custody wallets to stay safe as many of them don’t have a secure password or haven’t secured their crypto safely. He said 99% of people couldn’t back up or encrypt their crypto correctly, but they wanted to hold it by themselves. It will surely end up, and all of them will lose their crypto as only 1% of self-custody crypto holders know how to secure it properly.
He again repeated that holding their crypto in self-custody wallets is risky, and those who have crypto in their personal crypto wallets will surely lose the money. So it is better to save your crypto in a centralized exchange.
There are those peoples who need help backing up their security keys. In that case, they will lose their device. In other words, primarily, people need proper encryption to back up their crypto wallet; yes, they can write their password on a piece of paper. But what if someone else gets it and steals all of your funds?
The Binance executive continued that you can properly manage all your self-custody funds. But if the holder passes away, no one can get access to that self-account. So the custodians will have to go through a standard operating procedure in order to get those saved funds.
It was concluded in the end that you have many solutions, but many of these solutions have different related problems. So it is now up to the user which way he wants to go.
In spite of the primary operations of Binance being centralized. CZ repeats that company remains neutral between both custody and self-custody solutions. On November 14, he mentioned that he could happily shut down all the centralized crypto exchanges if all the users shut down their self-custody accounts and moved towards decentralized exchanges.
CZ also said that if we can develop a way that all the population of 99% of people can hold their Secure crypto safely and quickly, it will be great. In that case, all the centralized exchanges will shut down, and even no one needs it.
On December 14, a report was submitted by the wall street journal that in the Binance proof-of-reserve audit, he had seen some red flags. While on December 13, a piece of separate information was submitted by Reuters that the US department of justice is going to end that three-year investigation related to Binance. But there are chances that they could file a few criminal charges.
