Major industry leaders across the crypto market have warned investors to transfer their holdings to self-custody markets following the massive crash of FTX.
Executives such as Binance’s Changpeng Zhao (CZ) said in recent statements that holders were urged to take measures following the collapse.
CZ said in a tweet on 13 November: “Self custody is a fundamental human right. You are free to do it anytime. Just make sure you [do] it right.”
Self custody is a fundamental human right.
— CZ 🔶 Binance (@cz_binance) November 13, 2022
You are free to do it at any time.
Just make sure you do do it right.
Recommend start with small amounts to learn the tech/tools first.
Mistakes here can be very costly.
Stay #SAFU
He added that investors were recommended to “start with small amounts” to learn about the technologies and tools first. “Mistakes here can be very costly. Stay #SAFU,” he concluded.
According to Safe, a smart contract wallet, over $800 million USD in funds flooded the platform following the collapse.
Over $800M net in-flows into @Safe since last Tuesday. $325M on Thursday alone. Looks like a flight to self-custody. pic.twitter.com/hiuij9dp7s
— lukasschor.eth | Safe (@SchorLukas) November 13, 2022
Safe co-founder Lukas Schor said in a statement: “Over $800M net in-flows into @Safe since last Tuesday. $325M on Thursday alone. Looks like a flight to self-custody.”
A further incident where Cryto.com sent 320,000 ETH to Gate.io sparked massive criticism, with some stating investors should not store their holdings on centralised platforms “for longer than you need to,” Daily Gwei host Anthony Sassano said on a 14 November show.
Many investors began moving their money to self-custody contracts following the incident. Glassnode reported that over 90,000 crypto wallets received funds from central platforms on 9 November, the third of just three times in crypto history that such unprecedented events had taken place.
