On November 12, the Bahamas' securities regulator rejected instructing FTX to prioritize withdrawals from Bahamas-based users, following the exchange's statement on November 11 that it had been instructed by the country's regulators to enable Bahamian withdrawals.

MicroStrategy executive chairman Michael Saylor spoke to Cointelegraph during the Pacific Bitcoin conference on November 10-11 about the benefits of self-custody in the current market environment.

According to Saylor, self-custody gives investors property rights and keeps powerful actors from distorting the network and its participants.

Last week's events have already pushed many investors and traders toward self-custody solutions.

According to on-chain analytics firm Glassnode, the number of Bitcoin (BTC) withdrawals on centralized exchanges has reached a 17-month high since the sudden collapse of FTX in early November.

At the same time, capital inflows into self-custody wallets have increased dramatically.

Since last Tuesday, when the FTX saga began to spiral out of control, smart contract wallet Safe — formerly Gnosis Safe — has reported over $800 million in net inflows.

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The outflow from centralized exchanges induced by the FTX meltdown also caused issues for Ledger. This hardware-based cryptocurrency wallet provider was temporarily unable to process a large influx of inflows due to scalability issues.

According to CoinGecko, the token of the Binance-acquired self-custody wallet Trust Wallet (TWT) increased 84% in the last 48 hours to $2.19 before settling at $1.83.

Token holders can vote on how the wallet should operate and what technical updates should be made.

On November 13, Crypto.com unintentionally sent 320,000 ETH to Gate.io, undermining investor trust in centralized exchanges yet again.

On Nov. 13, Ethereum bull and The Daily Gwei host Anthony Sassano called out the crypto exchange for its error and later claimed that investors should not store assets on centralized exchanges for longer than they need to.

Meanwhile, Blockchain Association policy director Jake Chervinsky stated that self-custody education ought to be one of the first things newcomers learn, while Bitcoin advocate Dan Held said to his 642,800 Twitter followers that self-custody is a critical component of self-sovereignty:

What do you think of CZ and Saylor's recommendation for self-custody? Let us know your thoughts by sharing this article on social media.

Nov 14, 2022
Crypto News

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