Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance, believes that users are actually more likely to lose their cryptocurrency if they use a self-hosted wallet than if they store their cryptocurrency on a centralized exchange. “Holding cryptocurrency in your own wallet is not without risk,” he said.
Changpeng Zhao stated on Twitter Space held on December 14:
For 99% of people today, if they are required to hold their own cryptocurrency, they will eventually lose their coins.
Due to the widespread criticism of Binance’s “Proof of Reserve Report” released last week, investors began to question the financial situation of the exchange and withdrew funds one after another. The net outflow of funds in a single week was as high as 3.6 billion US dollars. A few hours before making the above remarks, Zhao Changpeng also warned Binance employees that “the road in the next few months is expected to be very bumpy and bumpy.”
Later, at a Twitter Space event, when asked “whether to encourage people to transfer cryptocurrencies from CeFi to wallets”, Changpeng Zhao responded that Binance maintains an objective attitude in this regard, neither encouraging nor opposing users from trading The withdrawal of the coins to the wallet depends entirely on the needs of the user. He continued:
In addition, I want to emphasize that many people are not able to safely keep their encrypted assets. Some people may lose their cold wallets, and some people will write their private keys on a note, but it disappears, or let others See, then the coin was stolen just like that.
Changpeng Zhao added that if they are technically competent, it is of course recommended that users hold their own cryptocurrencies, but doing so is not 100% safe:
I always try to educate people about the risks and that holding your own cryptocurrency in a wallet is not without risk; I actually think that users lose more money when holding their own cryptocurrency compared to centralized exchanges. Chances are greater.