2 years ago
Eight retired of 10 crypto investors store their integer assets connected blistery wallets, according to a CoinGecko survey observing crypto retention behaviour post-FTX collapse.
Meanwhile, 7 retired of 10 respondents said they held their assets successful centralized exchanges — portion different 3 retired of 10 said they utilized acold wallets, according to the survey report.
The survey
The survey was held betwixt December 2022 and January and collected answers from 421 idiosyncratic investors — the study didn’t specify if participants utilized aggregate types of storage.
The popularity of self-custody blistery wallets reflects the assemblage sentiment aft the FTX collapse. However, the preferred complaint of wallets tied to centralized exchanges is inactive considerably high.
The study justifies this complaint by saying that it is tied to the existent dominance complaint of centralized exchanges (CEXs) implicit decentralized ones. The study states:
“Most crypto holders stay reliant connected centralized exchanges for on- and off-ramping arsenic good arsenic for buying and selling crypto, specified that holders prioritize convenience implicit security.”
Regarding surveyed participants that preferred acold retention for their crypto, the study notes that the percent was not beardown capable to suggest a alteration successful assemblage sentiment.
Self custody wallets
CryptoSlate research from November 2022 revealed that the FTX clang pushed Bitcoin (BTC) reserves into self-custody wallets. In November 2022, the magnitude of BTC held successful self-custody wallets astir reached 15 cardinal — accounting for 78% of the circulating proviso astatine the time.
The FTX illness besides motivated crypto organizations to crook to self-custody services. Crypto speech level Robinhood started moving connected its ain self-custody wallet successful December 2022 and launched it successful January.
Additonally, the crypto steadfast Juno publically advised its users to crook to self-custody oregon merchantability their crypto assets successful January. On its authoritative Twitter account, the institution wrote:
“We powerfully urge withdrawing crypto assets to your self-custody wallet oregon selling your crypto for currency successful your Juno checking account…”
The displacement towards self-custody besides accrued the usage of acold retention during the aforesaid period. Data from December 2022 revealed that 450,000 BTC held connected an speech oregon a blistery wallet earlier 2022 had been moved to acold retention passim the year.
The station 8 retired of 10 investors store crypto connected blistery wallets: CoinGecko survey appeared archetypal connected CryptoSlate.
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