Michael Saylor suggests using non-custodial wallets amid trust issues
Former Microstrategy CEO talked about the ongoing crisis in the crypto industry because of the liquidity crunch with the FTX exchange.
In the present time, the whole crypto industry is under very big stress because of the liquidity crisis of the FTX exchange, which arose because of a very small controversy of this exchange with Binance. Due to this situation, the majority of crypto investors are not ready to trust any crypto exchange.
On 10 to 11 November, During the Pacific Bitcoin conference, Microstrategy’s former CEO & executive chairman Michael Saylor talked about this critical situation of the crypto sector, where the majority of the crypto companies are losing trust.
Saylor also talked about the merits of self crypto self custody solutions, as a haven for crypto investors & traders. He said that self-custody services provide the right for people to hold their property in their hands. And also it helps to reduce the power of centralized crypto exchanges, which further reduces the chances of power abuse.
“In systems where there is no self-custody, the custodians accumulate too much power and then they can abuse that power,” Saylor explained.
Further, Saylor explained that self custody of crypto assets helps to distribute the power equally, which pushes the transparency & lack of centralized power virtue.
Former Microstrategy CEO also said that non-custodial services help to maintain the integrity and security of blockchains because it increases decentralization. According to him, if we can’t use non-custodial services to manage funds then we can’t push the adoption of a decentralized network.
Changpeng Zhao on self custody
Changpeng Zhao (cz), the founder of first ranked crypto exchange Binance, is also a supporter of self-custody services. Yesterday he said that if people are not confident to go with centralized crypto exchanges including Binance, then they can go with a Decentralized Exchange & Wallet “Trust wallet”, which is a service by Binance exchange.