Binance CEO Changpeng Zhao believes that the vast majority of users do not have the knowledge to store cryptocurrencies on their own and therefore may lose assets.
Changpeng Zhao supports self-custody, but emphasizes that it must be “do the right thing.” During a recent conference, Zhao noted that often users do not pay enough attention to storing wallet keys, which leads to the loss of either keys or assets in addresses.
“For most people, I think 99%, asking to hold assets on their own will result in the loss of cryptocurrencies. Most do not backup and lose devices, others do not pay attention to protecting keys. For example, the user writes the key on a piece of paper, and someone outside gets access to it, and funds are lost,” Zhao said.
The CEO of Binance spoke about other problems with storing assets on their own wallets. For example, if the holder of cryptocurrencies died and did not take care of the will, then it will be difficult to get access to the assets. At the same time, centralized custodial services have a routine procedure for granting access.
Zhao hopes that in the future there will be convenient and secure means for self-custody of assets. And if 99% of users can easily store funds at home, then centralized exchanges will become unnecessary. At the end of the speech, he emphasized that “different solutions have different risk profiles”, so the user himself must decide which solution is most convenient for him.
Earlier, Changpeng Zhao published a letter to Binance employees, in which he stated that the exchange is ready to withstand any difficulties in the market, but it is worth waiting for a difficult period and regulatory checks.