The FTX debacle triggered an increase in calls for crypto self-guard this week, including Binance CEO Changpeng Zhao describing it as a “basic human right”. However, some warn that there are always risks when you choose to keep your digital assets on your own.
Vitalik Buterin, the co-founder of Ethereum, Underline on Twitter that while decentralized finance (DeFi) and self-custody ethos were popular this week, there are always risks. According to the Ethereum co-founder, bugs in smart contract code are among those risks. To avoid risks, Buterin also mentioned some tips such as code simplicity, audits, formal verification and defense in depth.
Apart from smart contract bugs, transfer crypto assets after death has also become a topic on social media. Watchdog Capital executive and broker Bruce Fenton, bring implement self-guard tests like asking the next of kin to collect their coins as if they were dead. According to Fenton, without a plan for his legacy, self-custody is incomplete. “It’s a gift for no one,” he said argued.
Tom Dunleavy, research analyst at crypto data platform Messari, brought the self-custody request into the conversation. The analyst argued that self-care is “not wanted by 95% of the population”.
Bankless is a meme not a reality
Dad, Grandma and your friend Joe don’t want to be their own bank
They want some level of protection and backup
We need to find a way to provide them if we want people to use crypto
— Tom Dunleavy (@dunleavy89) November 11, 2022
Dunleavy said onboarding billions of users requires safe, transparent, and trustworthy custodial work, and argued that most people want safeguards and backup.
As the aftershock of FTX’s collapse continues to reverberate within the crypto community, rumors surround former FTX CEO Sam Bankman-Fried continue to spread. On Twitter, some claim the beleaguered executive filmed a master class on trading which was due to air in December. Apart from that, unnamed sources claim that authorities are preparing to send Bankman-Fried to the United States for questioning.