Paxful CEO Ray Youssef wants to see more bitcoin (BTC/USD) holders take control of their funds through self-custody. his advice comes many times crypto exchange Trying to assure customers that their assets are safe with proof of stores.
But Paxful’s founders are in favor of self-custody, noting that publishing proof of storage is not enough. In a message to all Paxful users shared On Twitter, Youssef noted that users should try to only trade what they are trading on exchanges.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter today.
Youssef also believes that the onus is on every crypto exchange to ensure the security of their users, and that advocating for self-custody is the only way to achieve this goal.
FTX collapse shows self-custody is the way to go
In a world where some exchange CEOs are fighting to get customers to trust proof of reserves and assure them of the safety of funds, Youssef is taking the step of asking customers to ‘run the bank’. It’s a bold move that has some platforms horrified, but they say that Paxful will be emailing all of its users to strongly advocate for self-custody.
“We will send an email every week strongly advising our people to never save on any exchange, including Paxful. That’s the way! Always self-custody your savings!”
Since the shocking collapse of FTX there has been an increasing push for customers to move crypto off of exchanges.
It has since been established that Sam Bankman-Fried, the crypto exchange’s former CEO, exchanged exchange funds and customer funds with billions of dollars of customer assets sent to Alameda Research. The type of fraud perpetrated on FTX and the magnitude of the loss to customers has prompted people to abandon centralized exchanges and go into self-custody – bitcoin wallet Where the user maintains complete control of the funds by owning the private keys.
“For too long people have trusted others to hold money on our behalf but – as we saw with banks in 2008 and more recently with FTX – you are at the mercy of these custodians and their ethics.”
Bitcoin Crypto Related Post