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The Rising of Crypto Self-Custody

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The FTX virus has spread very fast across the crypto exchanges and investors have been looking for a self-custody solution.

And why not, when you see exchanges like FTX crashing hard and you have no clue whether you are going to get your hard earned money back. It indeed is a situation nobody might want to be.

I have been talking about this in my earlier post and it does look like I was right. The FTX crash does look to prove that. I was of the opinion that as an investor having a significant amount of crypto put on exchanges, your assets could be at stakes.

As per a report, there have been a massive outlflows of BTC and Stablecoins from exchanges after the fall of FTX.

According to a data from Glassnode, the speed of BTC moving out of the exchanges is so high that all the Bitcoin that flowed into the exchanges since 2018 has now been withdrawn.

The demand for self-custody and spot driven BTC markets is catching some speed rising fast.

Credits: Glassnode/ Onchain-College

Not only bitcoin but there have been a big outflow of popular stablecoins like BUSD and USDC from exchanges over the last seven days. It is reported that these stablecoins have been moving into self-custody in big numbers.

Following the announcement from Binance regarding converting USDC to BUSD, a big amount of reshuffle in the stablecoin holdings have been reported.

The lesson you have to learn from recent events is moving your cryptos to self-custody.

What I Like About Hive

What I like about Hive is that I don't need to worry about my assets on Hive being in my wallet as I have it in my control. The way how curation rewards are earned with Hive Power, I focus more on Powering Up as much Hive as I can so that it may add to my curation rewards.

Just in case one compromise his key, the amount of Hive being staked needs probably 13 weeks to fully power down and that is something which could help save some of your assets from being cashed out immediately by hackers after you recover your account keys.

Note: It's not a financial advice.

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