In a tweet dated November 13, Binance CEO called for ‘personal custody solutions’. The altcoin project pointed out by CZ has reached a new high today after rallying 80%.
Binance CZ points to this altcoin project for decentralized custody solutions
Changpeng Zhao (CZ) is making statements on Twitter to keep investor confidence alive after the FTX crisis. He said yesterday that Binance not only offers centralized custody solutions, but also supports decentralized custody solutions through Trust Wallet. Trust Wallet’s native token TWT jumped over 80% after CZ’s private share. It updated its ATH level to $2.50, up more than 50% on November 14.
Behind the rally is demand from investors moving away from centralized exchanges as much as CZ’s tweet. With the FTX crisis, withdrawals on centralized exchanges reached a 17-month high, according to Glassnode data.
📈 #Bitcoin $BTC Number of Exchange Withdrawals (7d MA) just reached a 17-month high of 3,424.315
View metric:https://t.co/QyB7zouWee pic.twitter.com/Su4biTEM7h
— glassnode alerts (@glassnodealerts) November 13, 2022
CZ highlights the importance of decentralized custody solutions like Trust Wallet
Trust Wallet supports major Blockchains like Ethereum, Binance and TRON. It collects cryptocurrencies from investors from various networks in a single, decentralized wallet. “Personal retention is a fundamental human right,” CZ tweeted on November 13. He encouraged using Binance-backed Trust Wallet for decentralized custody solutions. Binance CEO also cites an article he wrote 2 years ago for custody solutions:
We are not just a CEX. We offer choices.
Store crypto yourself? Read this article I wrote from 2 years ago. The 15 minutes read will save you money and headache later. @TrustWallet
Read the same article if you use a CEX, too. @binancehttps://t.co/Kp6VeKirgZ
— CZ 🔶 Binance (@cz_binance) November 13, 2022
CZ’s push for personal storage solutions comes as investors rethink how to keep their funds safe after the collapse of FTX and a subsequent hack that pulled $600 million worth of funds from their wallets. Trust Wallet, acquired by Binance in 2018, is a decentralized hot wallet that facilitates the storage of cryptocurrencies and NFTs. It offers a wide range of custody, especially compatible with Blockchains such as Ethereum, Binance and TRON.
CZ advises investors to start with small amounts and get used to the technology to avoid costly mistakes. He also adds that Trust Wallet facilitates the self-protection of crypto.
Investors are moving away from centralized exchanges as FTX collapse
Data from blockchain analytics firm Nansen identified more than $72 million in outflows on Binance today. Huobi and Crypto.com recorded $12.7 million and $7.3 million respectively. However, data from Glassnode shows that Bitcoin withdrawals from the exchange have increased recently. This shows that the investor’s preference for self-hiding has increased. cryptocoin.comIn this article, we have quoted the altcoin reserves that exchanges share to gain investor trust.
