The already challenging year for cryptocurrency investors cascaded into the demise of one of the industry’s most prominent cryptocurrency exchanges. Now, with many wondering what’s next, cryptocurrency exchange Paxful’s CEO, Ray Youssef, has advised users to embrace self-custody.
There is no denying that the downfall of FTX, and the potential criminal enterprise it developed, has heightened concern from investors. Subsequently, cryptocurrency exchange platforms have turned to more significant efforts of transparency. Youssef, however, is strongly advocating an alternative.
Bitcoin Self-Custody Preached by Crypto Exchange CEO
The detrimental actions of FTX founder, Sam Bankman-Fried, have shaken the industry to its core. There are millions of customer assets that are not accounted for, and consumers are undoubtedly more hesitant than they have ever been.
Answering this concern, cryptocurrency exchange platforms are all embracing transparency efforts in the form of proof-of-reserves audits. Evidently showcasing to clients that their assets are safe. Yet, Paxful CEO Ray Youssef has taken to Twitter to advise adopting the idea of self-custody.
Youssef is urging all cryptocurrency investors, even those utilizing the cryptocurrency exchange platform Paxful, to keep control of their assets. In a Tweet, Youssef stated, “{We} will be sending an email every week strongly advising our people to ever keep savings on any exchange, including @paxful.”
In a subsequent Tweet, Youssef noted his advice was driven by a responsibility to customers. Stating, “My sole responsibility is to help and serve you. That’s why today I’m messaging all of our {Paxful} users to move your Bitcoin to self-custody. You should not keep your savings on Paxful, or any exchange, and only keep what you trade here.”
Youssef’s advice is sound, notably in the current volatility of the market. Furthermore, the cryptocurrency exchange platforms should be spaces to trade digital assets, but storage should be maintained by the individual. These practices may have lessened the effects of investor losses during FTX’s dealings greatly.