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Binance CEO Advocates Crypto Self-Custody as Market Fears Further Fallout after FTX Collapse

Changpeng ZhaoChangpeng “CZ” Zhao, CEO of the prominent cryptocurrency trading platform Binance, urged the crypto community to retain ownership of their digital assets via Trust Wallet, resulting in a sharp rally for the app’s native crypto token, TWT.

Self-custody is a basic human right, tweeted Zhao on Sunday. “You are allowed to do it whenever you like. Just be careful to do it correctly.”

Zhao’s drive for self-custody has come at a time when investors reconsider how to safeguard their digital assets in the aftermath of the failure of cryptocurrency exchange FTX and the following theft of $600 million worth of crypto tokens from the company’s wallets. Trust Wallet is a decentralized hot wallet that facilitates the safekeeping of cryptocurrencies and non-fungible tokens. It was bought by Binance in 2018. It is interoperable with several distributed ledgers.

Trust Wallet Token (TWT) is the decentralized online wallet’s native token, enabling its holders to vote on app functionality additions and improvements. Messari, a source of statistics, reports that the token’s price has increased by 80% in the previous twenty-four hours to a new high of $2.3.

“You haven’t yet purchased bitcoin until you get it in a wallet whose private keys you own,” said Blockware Solutions in a market analysis newsletter issued on Friday. The continuous irresponsible handling of customer cash by exchanges is evidence that you cannot rely that these organizations possess the bitcoin you bought.

Zhao suggested that investors begin with tiny investments and familiarize themselves with the technology to stop making expensive blunders. Zhao said that Trust Wallet supports cryptocurrency self-custody. “@TrustWallet your keys, your coins,” Zhao tweeted in a separate message.

“You haven’t yet purchased bitcoin until you get it in a wallet whose private keys you control,” said Blockware Solutions in a market intelligence report issued on Friday. The continuous irresponsible handling of customer cash by exchanges is evidence that you cannot rely that these organizations own the bitcoin you bought.

Ilan Solot, co-head of cryptoassets at London-based Marex Solutions, stated in an email that the adage “not your keys, not your cash” resonates louder then ever before.

After FTX fell, investors have begun taking currencies off marketplaces. As per statistics recorded by blockchain analytics company Nansen, Binance had a net crypto token outflow of over $72 million early today, while Huobi and Crypto.com reported withdrawals of $12.7 million and $7.3 million, respectively.

According to Glassnode statistics, bitcoin withdrawals from crypto exchanges have grown lately, showing a desire for self-custody among investors.

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