Binance CEO Changpeng “CZ” Zhao asserted that users have a greater chance of losing cryptocurrency if they keep it in a cold wallet rather than deposit it on a centralised exchange — according to his latest statement on Twitter Space.
A few hours after it was reported that CZ told his staff to anticipate for a “bumpy” few months, he said his company was “neutral” on whether users would want to store their own cryptocurrency or put it on an exchange.
Zhao said that most users are not able to back up their security keys, instead losing their device. He added that they tend to jot down encryption information on paper in lieu of proper encryption for their backup — possibly leading to someone seeing the written note and stealing their funds. “And also today, very fundamentally, if a person passes away, they don’t have a way to give to their next of kin. Whereas we have a standard operating procedure,” said CZ.
The practise, according to CZ, has its own problems, but people who are technically capable of handling cryptocurrency safely should do so.
The “Not Your Keys, Not Your Coins” slogan saw a comeback in the community following the demise of Binance’s rival FTX and the ensuing disclosures concerning its financial situation.
