“This is the way! Self custody your savings always,” Youssef outlined.
Ray Youssef – Chief Executive Officer of crypto platform Paxful – said customers should never keep their bitcoin holdings on centralized exchanges.
Instead, they must self-custody their possession to prevent becoming victims in another crash similar to the FTX one.
Don’t Trust Centralized Entities
Youseff urged market participants to store their bitcoin in self-custody wallets. He said he feels responsible for Paxful’s millions of users, hence his recommendation:
“As CEO of Paxful, I am responsible for the bitcoin of over 11 million people. I take great pride in protecting our community’s funds, and, unlike others in our industry, I have never touched our customers’ money.”
Ray Youssef
Ray Youssef, Source: City AM
He said clients should only keep the cryptocurrencies they trade on platforms, while the rest should head for cold storage. Youssef vowed to send weekly emails to customers in a bid to hammer in the importance of this.
The CEO stated the 2008 bank crisis and the recent collapse of the crypto exchange FTX are clear examples of why people should not be “at the mercy of custodians and their morals.”
Bitcoin gives people a chance to gain financial freedom, but everyone should be in control of their sats to secure complete monetary independence, he added.
Nonetheless, Youseff assured that the assets of those who wish to keep relying on Paxful as a custodian will be “safe.”
Trust Melting
An increasing number of cryptocurrency investors seem to have lost their trust in centralized exchanges after the demise of FTX. The platform was among the leaders in its field, which is why its insolvency triggered significant panic in the space.
Data from last month showed that over $8 billion worth of digital assets had flowed off of trading venues between November 6 and November 14.
As CryptoPotato previously reported, many bitcoin investors have already started moving their possession into self-custody wallets. According to Glassnode’s stats, this was a “direct response” to the crash of FTX.
“From Shrimp, to Whales, Bitcoin on-chain balances are on the rise,” the entity stated.
If one good thing came out of it, though, was that centralized exchanges actively started publishing proof-of-reserves, and while not all of them satisfy all requirements, at least it’s a step in the right direction.