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Binance CEO Sounds a Note of Warning on Crypto Self-Custody



Binance CEO Sounds a Note of Warning on Crypto Self-Custody

Following the outflow of billions of dollars out of centralized exchange, Binance CEO Changpeng Zhao (CZ) has sounded a note of warning on crypto self-custody during a Binance-run Twitter Spaces on Dec. 14.

CZ asserted that 99% of people adopting self-custody of their digital assets will eventually lose it one way or another. He justified the claim that it is possible if security keys are not stored securely or well backed up.

While CZ is a renowned supporter of self-custody, he maintained that using crypto self-custody is not risk-free, stressing that more people lose their crypto when they are holding on their own than on a centralized exchange.

He identified some circumstances that often lead to loss of funds such as failure to back up security keys, lack of proper encryption for backup, loss of device, among others.


CZ further argued that even when self-custody funds are well secured and protected, they are often impossible to access by immediate family members, but custodians like Binance can take advantage of standard operating procedure to solve these types of problems.

Recall that increasing adoption of self-custody wallets led to the withdrawal of over $1.14Bn from Binance within 24 hours on Dec 13.

Metamask to Let U.S. Users to Buy Ethereum via PayPal

Amid the bear market, developments continue to be recorded as Digital payment platform PayPal partnered with MetaMask parent company ConsenSys to enable users to buy Ethereum (ETH) via PayPal.

It was established that the service will be available to PayPal users only in the United States before users in other regions will be considered.

The new development will avail users with seamless digital assets transactions by buying and transferring ETH from PayPal to MetaMask via their Mobile MetaMask App, which will be linked to their PayPal account.

PayPal’s product manager, Lorenzo Santos, remarked that the new development will not only enable PayPal U.S. users to enjoy seamless crypto transactions, but it will also enable exploration of the Web3 ecosystem.