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Paxful CEO urges Bitcoin self-custody, not trading

Self Custody:

Ray Youssef, the CEO of the cryptocurrency exchange Paxful, supported the idea of self-custody. At the same time, some executives decided to focus more on ensuring the security of the funds on their platforms.

Investor demand for proof of their assets via crypto exchanges strengthens the case for self-custody. Ray Youssef, the cryptocurrency exchange Paxful, sided with the idea of self-custody as he assumed responsibility for more than 11 million customers. At the same time, some CEOs decided to intensify their efforts to ensure the security of the cash on their platforms.

The collapse of FTX served as a wake-up call for investors who had previously relied heavily on crypto exchanges to protect their funds. However, FTX CEO Sam Bankman-Fried violated this trust by using Alameda Research to steal users’ money. Since then, many exchanges have had to publicly disclose wallet information as reserve evidence.

Protecting bitcoin:

Youssef dissociated himself from “others in the industry” in a tweet by affirming that he never touched investors’ money and adding the following:

“Your assistance and service are the only things I must do. To shift your Bitcoin into self-custody, I’m messaging all of our [Paxful] users today. You should only save what you trade here and not keep your savings on Paxful or any other exchange.
Users will receive weekly emails from Youssef explicitly cautioning them not to store their cryptocurrency on any cryptocurrency exchange, including Paxful. The businessman emphasised the issue of relying on custodians like SBF, saying that “you’re at the mercy of […] their morals.”

Satoshi Nakamoto is to thank for protecting Bitcoin from centralised manipulation and control as an asset. Youssef drew attention to the unique chance that Bitcoin presents, which is “the chance to truly be in control.”

While Youssef urged users to handle their assets fully, he gave investors who chose to deposit their Bitcoin on Paxful assurances about the security of their money. The businessman also intends to remove Ether from Paxful’s list of traded assets due to its perceived lack of integrity compared to the Bitcoin ecosystem.

The decision to remove Ether from Paxful was made in response to Jeremy Garcia criticism of the Ethereum protocol, who is also the founder and CEO of Satoshi’s Journal.

SBF gained notoriety when he disclosed his intention to launch a new company to pay back the FTX investors.

“To be able to accomplish that, I would do anything. And I’ll make an effort if I can, “

The famed businessman recently responded when asked by the BBC if he would launch a new company to compensate FTX subscribers.

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