CZ Zhao urged Binance’s 7.6 million followers in a tweet on Nov. 13 to use self-custody crypto wallets to store their own crypto.
Self-custody is the solution amid the increasing uncertainty
A number of industry heavyweights urged crypto traders and investors to self-custody their crypto assets in the wake of the collapse of FTX.
In her quote, CZ emphasized the importance of self-custody as a fundamental human right.
“Self custody is a fundamental human right. You are free to do it at any time. Just make sure you do it right. Recommend start with small amounts to learn the tech/tools first. Mistakes here can be very costly. Stay #SAFU,” he said on Twitter.
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.
— CZ 🔶 Binance (@cz_binance) November 13, 2022
Michael Saylor, executive chairman of MicroStrategy, also spoke to Cointelegraph during the Pacific Bitcoin conference on Nov. 10-11 regarding self-custody.
According to Saylor, self-custody does more than provide investors with property rights; it also protects the network and its participants from the corruption of powerful players.
“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 said.
Self-custody important role
Self-custody also increases decentralization, which is important for maintaining blockchain integrity and security, according to Saylor.
The decentralization of blockchain involves the transfer of control and decision-making from a centralized entity to a distributed network.
“If you can’t self-custody your coin, there’s no way to establish a decentralized network.”
As a result of last week’s events, many investors and traders are now considering self-custody.
According to on-chain analytics firm Glassnode, the number of Bitcoin withdrawals on centralized exchanges has reached a 17-month high since FTX collapsed in early November.