Changpeng Zhao ridiculed for his cryptocurrency predictions

A statement made by the CEO of the largest cryptocurrency exchange Binance has puzzled hundreds of digital asset investors. During the latest AMA Twitter conference, Чанпен Чжао" href="https://noworries.media/biography/chanpen-chzhao/" data-bio-id="3681">Changpeng Zhao said that those who transfer their virtual coins from cryptocurrency exchanges to personal wallets will still lose them. The statement was made amid a massive outflow of funds from Binance.

The main subject of ridicule by users was the alleged «clear conflict of interest» of Changpeng Zhao in a conversation on this topic. From a technical point of view, self-deposited funds are much safer than assets held on cryptocurrency exchanges, given the frequency of hacker attacks on trading platforms, dishonest management on exchanges, and negligence (as was the case with the FTX precedent).

Scenarios in which users can lose their cryptocurrency include unintentional loss of keys, specifying the wrong recipient address during fund transfer transactions, and other typical cases of poor asset management. However, if the wallet owner properly stores their private keys and double-checks the address during money transactions, losing cryptocurrency is almost impossible.

Self-custody just got even better with @TrustWallet. https://t.co/qMxT1zRSnF

— CZ? Binance (@cz_binance) December 14, 2022

Most likely, Twitter users and participants of the AMA conference simply took Changpeng Zhao’s phrase out of context. What he probably meant was that storing assets in your own wallet is not risk-free, and users will still lose their funds, even without third-party intervention. The reason is the extremely low level of digital education of users and the lack of a user-friendly crypto wallet interface that would allow storing cryptocurrency as easily as storing assets on centralized exchanges.

Earlier, the head of Binance even campaigned for people to store cryptocurrencies on personal wallets. He noted: «Self-storage of assets is a fundamental human right. You can do it at any time, but make sure you store your cryptocurrency properly. I recommend starting with small amounts to familiarize yourself with the technology and tools for storage. Mistakes can be costly.»