The FTX debacle sparked a surge in calls for cryptocurrency self-custody this week, including Binance CEO Changpeng Zhao describing it as a “fundamental human right.” However, some caution that there are still risks when choosing to hold digital assets for your own account.
Vitalik Buterin, the co-founder of Ethereum, stressed on Twitter that while the spirit of decentralized finance (DeFi) and self-custody were very popular this week, there are still risks. According to the Ethereum co-founder, flaws in the smart contract code are some of these risks. To avoid risks, Buterin also mentioned tips like keeping code simple, auditing, formal verification, and defense-in-depth.
Aside from smart contract bugs, the transfer of crypto assets after death also became a topic on social media. Bruce Fenton, an executive at broker Watchdog Capital, coat to bring up some evidence of self-custody such as asking the nearest relative to recover one’s coins as if he had died. According to Fenton, without a plan for his estate, self-custodial care is incomplete. “It is not a gift for anyone”, plot.
Tom Dunleavy, a research analyst at cryptocurrency data platform Messari, introduced the demand for self-custody into the conversation. the analyst plot that self-protection “is not desired by 95% of the population”.
Bankless is a meme not a reality
Dad, grandma, and your friend Joe don’t to be their own bank
They want some level of safeguards and backup
We need to figure out a way to provide those if we want people to use crypto
— Tom Dunleavy (@dunleavy89) November 11, 2022
The absence of banks is a meme, not a reality
Dad, Grandma and your unknown friend don’t want to be their own bank
They want some level of safeguarding and backup
We have to find a way to provide them if we want people to use cryptocurrencies.
According to Dunleavy, adding billions of users requires secure, transparent and trustworthy custodial work, and he argued that most people want some level of safeguarding and backup.
As the aftershocks of the FTX collapse continue to be felt within the cryptocurrency community, rumors surrounding former FTX CEO Sam Bankman-Fried continue to spread. On Twitter, some claim the embattled executive has filmed a master class on trading that was scheduled to be released in December. Apart from this, anonymous sources claim that the authorities are preparing to bring Bankman-Fried to the United States for questioning.
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