Lets talk about the custodial wallets and what implications may it have on the reputation of crypto.
The latest market crash has sort of exposed the nefarious coins and self-serving exchanges.
Investors were impeded from withdrawing their assets amidst the market crash which has sort of hurt the reputation of the already bruised crypto.
Now as an outsider reading the news about millions of investors sitting there waiting to ride their assets out while the market continues to plummet is a terrible look indeed.
Isn't it providing power to some media to beat the crypto sector?
And what message it sends? We can take your money when it suits us.
This is a ridiculous approach in building a long term trust in this space.
Investors have to have a full control of their assets. And this is the underlying issue with custodial wallets. Investors cannot have a full control over their assets if it's in a custodial wallet.
This is not something to decide by them what investors want to do with their Bitcoin or any other crypto asset. It's what investors have to decide as it's their money.
It's doesn't mean that custodial wallets don't have their place. It does make sense for the institutions that want to buy sell crypto assets working with the trusted, insured and licensed custodial wallet provider.
But that's not what we are talking about here. We are talking about everyday individuals.
Myself being using Binance for some time now. And I have faced withdrawal issue over there while trying to move my assets from there.
What else could you do when they decide to halt transactions for a particular asset and other assets?
What is your take on it?