Changpeng Zhao, the co-founder and CEO of cryptocurrency exchange Binance, suggested that for most, keeping crypto assets on an exchange is safer than keeping the keys themselves.
Zhao gave his comments in a tweet on Jan. 19 after famous crypto skeptic and gold bug Peter Schiff complained that he lost access to his Bitcoin (BTC). Invoking the phrase “SAFU” — a slanger term in the crypto community for “safe,” Zhao said:
“Many hardcore crypto [organizations] advocate storing your own keys. But the truth is, today most people are not able to secure a key even from themselves (losing it). A trusted centralized exchange is safer for most people. The numbers speak for themselves. Need to work on wallets.”
Zhao explained that he believes a centralized exchange to be safer option for most people. One Twitter user noted that the suggestion is particularly bad coming from Binance’s CEO, given that the platform has previously been hacked.
In early May 2019, Binance experienced a major security breach resulting in the theft of 7,000 BTC, equivalent to over $40.7 million at the time. Read More...