Not Yo Keys Not Yo Crypto
Some of the major Crypto lending platforms, blockchain projects, and centralized exchanges couldn't face the heat of the current crypto winter we are going through right now. 2022 has seen a lot of downfalls already and it just doesn't seem to get any better. A lot of them bled before they could make any serious money for their investors.
Due to extreme market conditions, Celsius, one of the most popular crypto lending platforms of all declared bankruptcy with a debt gap of $2.8 billion dollars. They don't have any funds to operate for more than a month. Recently they announced a withdrawal freeze to 'stabilize' their operations and solve liquidity problems.
It didn't take much time for many long-term investors to realize that their crypto is at the mercy of these centralized platforms. They are the real custodians and if they fuck up, their money is not theirs to take. Those who haven't understood the gravity of this situation will get burned soon. Have a look at the following crypto projects & funds that got burned this year:
- Celsius
- Voyager
- Terra (LUNA) & UST
- Vauld
- BlockFi
- BlueBenx
- Hodlnaut
- Nuri
- Zipmex
- 3AC
Believe me, when I say this - it's a never-ending list. Most projects pump due to over-hype during a bull run and die in the next crypto winter if they have no meat. The ones that are centralized, would stop its users from accessing or transacting their own funds. If your crypto is not secured in a self-custody cold wallet, you are operating under a huge risk especially if you are investing for the longer term.
Hardware Wallets Under Spotlight
The cryptocurrency industry can be a volatile place. There's no shortage of stories about how people lost money due to their own bad decisions and lack of knowledge, but there are also instances where smart investors who made prudent choices were able to weather the storm. One silver lining of the past few months in the crypto has been the fact that it has forced asset holders to be more careful with how they manage their holdings.
As the crypto winter continues, investors have turned to hardware wallets for their virtual currencies. According to a recent article published by Decrypt, Ledger says sales spiked by 4.5x. Trezor and SafePal had bumps in their business as well.
The reason this is happening is that hardware wallets are secure storage devices that use cryptographic keys instead of passwords or passphrases—making them nearly impossible to hack or lose money if someone else gets access via theft or fraud. The downfall of lending exchanges and recent bridge hacks resulted in an increase in demand for these products. The concern about digital assets being lost due to these issues was one factor motivating this new trend towards more secure custody solutions like hardware wallets.
Conclusion
The cryptocurrency industry has seen a huge growth in the last few years, with many people seeing opportunities for massive returns on their investments. However, as we have learned over time, things don't always go according to plan which is why this current downturn could be a blessing in disguise. Get a hardware wallet from trusted websites and save your future now! Just remember, not yo keys, not yo crypto. YOLO! xD