What happened to the ownership and control of your cryptocurrency tokens promised by the blockchain?

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• Blockchain promised people the ability to keep their cryptocurrency tokens safe in their wallets, and control where and when those tokens moved and you don’t knee to ask anyone for permission.
• However if this is the promise of blockchain, did blockchain break its promise to investors?
• No investors failed to understand that creating accounts on exchanges allows you to store your cryptocurrency tokens there where they are quickly available for trading. But you are transferring the crypto from your wallet to the exchange wallet. - Once the investor does this, the tokens are no longer under their control and protected by their cryptographic security code, which is also called private keys. The investors crypto is transferred to a wallet controlled by Coinbase, and controlled by Coinbases cryptographic password or keys.
• This means the investor has given up the most powerful aspect of cryptocurrency, the control over their crypto in their personal wallets, secured by their private keys.
• ‘This is why Coinbase could block Russian investors from being able to move, sell, or trade their crypto. The Russian investors crypto is inside a wallet on the Coinbase exchange, controlled by the private keys which belong to Coinbase.
• This is where the concept of not your. Keys, not your crypto, comes from.

-As you can imagine, this was shocking, disappointing and perhaps angered these Russian Investors.

Last words

Cryptocurrency and the Blockchain is a new frontier, where there are new rules and new concepts. Decentralization brings great power and great responsibility. You must be careful not to rely on convenient centralized exchanges for token storage, unless your willing to give up all the protections of decentralized storage solutions.

Welcome to the new frontier.

@shortsegments

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