Binance CEO Changpeng “CZ” Zhao has warned the cryptocurrency community about self-control, suggesting that 99% of those who choose to own cryptocurrencies are likely to lose it in some way. I’m here.
For years, CZ has championed self-custody, calling it a “fundamental human right,” but always urging users to “do it right.” He published “CZ Tips” on self-preserving cryptography in his February 2020.
in the meantime In a Twitter Space run by Binance on Dec. 14, Binance’s CEO claimed security keys were often not stored securely, backed up, or properly encrypted, and used self-custody wallets. I kept getting people’s attention.
“For most people, 99% of people today, if you ask them to keep their cryptocurrency to themselves, they will eventually lose it.”
CZ reiterated that holding cryptocurrencies in one’s wallet is “not without risk”, adding that “more people hold themselves and lose money and lose money on their own than on centralized exchanges.” You lose more cryptocurrency when you own it.”
And it’s live!
Join our Twitter space. @cz_binance I have all your questions answered. https://t.co/U0hJOWy74P https://t.co/CDDC20cHgt
— Binance (@binance) December 14, 2022
“Most people can’t back up their security keys. They lose their devices. […] Proper encryption is not applied to backups. They put it on paper and someone else sees it and steals those funds,” he explained.
Binance executives also said that even if the self-custody fund is properly managed, “if a person dies, there is no way to pass it on to their next of kin,” while custodians like Binance have “standard operating procedures.” can be implemented,” he said. ” to solve the problem.
Binance executives concluded that “different solutions have different risk profiles” and it is up to users to decide what works best for them.
Despite the fact that most of Binance’s operations are “centralized,” CZ said in an earlier Twitter Space discussion on Nov. 14 that Binance would be happy to shut it down, and the company is under custody. and reiterated that it remains “neutral” about prioritizing self-custody solutions. A centralized cryptocurrency exchange when users move to decentralized alternatives.
“If there was a way for people to store their assets safely and easily, and 99% of the general population could do it, then centralized exchanges wouldn’t exist, or probably should exist. will be gone, which is great,” CZ said.
Related: Members of the Crypto Community Discuss Bank Runs on Binance
Binance’s latest Twitter Spaces event comes at a tumultuous time for the exchange. Binance has seen a significant pullback due to concerns about its balance sheet and potential lawsuits.
The Wall Street Journal reported on December 11 that there were some red flags in Binance’s margin audit. Meanwhile, Reuters reported on Dec. 13 that the U.S. Department of Justice is nearing the end of her three-year investigation into Binance, which could be the case. file criminal charges.
The past few days have seen a massive exodus of stablecoins from trading platforms. This includes his $2.2 billion outflow of stablecoins Binance USD (BUSD), Tether (USDT), and USD Coin (USDC) in the 24 hours from December to December. 13-14 days, according to data from blockchain intelligence platform Glassnode.
Interestingly, Bitfinex’ed — a longtime Tether pundit — shared a screenshot of Binance offering its customers 50% APR of staked USDT to its 98,000 Twitter followers on December 14th. Rapidly declining stablecoin reserves.
Binance is currently offering 50% APR on Tether scam tokens. It seems that Binance is desperately trying to increase deposits.
Our first cloud mining scam has resulted in a 50% APR rate for Tether scam tokens!
H/t @Tethertothe1 pic.twitter.com/TZ0oPKxvss
— Bitfinex’ed Kassandra (@Bitfinexed) December 14, 2022
In a recent Twitter Space discussion, CZ attributed weakened market sentiment, especially related to custodial solutions, to FTX’s devastating drop.
