Tesla CEO Elon Musk believes that people investing in Dogecoin, the meme-coin cryptocurrency, should keep the custody of their ‘keys’, and ditch centralised exchanges like Binance and Robinhood.
Responding to a tweet by Bill Lee, an investor in Musk’s ventures, Musk agreed that until the wallet keys are in the user’s possession, they should not consider the holdings as “their own”.
Digital currencies such as Bitcoin, Ethereum or Dogecoin, are stored in something called a ‘wallet’, which can be accessed by using your ‘private key’—the crypto equivalent of a super-secure password— without which the crypto owner cannot access the currency.
“The core focus of the @MyDogeOfficial vision is to break the dependence on CEXs like Binance and Robinhood and let #shibes take custody of their own coins!” a Twitter user who goes by the username @MyDogeCTO said. MyDogeWallet, is a Dogecoin gateway Metaverse for breaking dependency on exchanges like Binance and Robinhood.
To this, Lee replied saying, “not your keys, not your crypto.” Musk backed Lee with his one-word response : “Exactly.”
The Tesla CEO wants people who own digital asset to own their own private keys rather than letting an exchange like Binance and Robinhood handle it. This is because hackers often target crypto exchanges to get possession of investors keys. For instance, centralised exchange Robinhood was earlier this month breached by an unauthorized third party.
Meanwhile, cases of breaches and fraud in the cryptocurrency market are pushing toward their highest count this year, a study released from Crypto Head revealed.
The same study noted that the average value of breach and fraud cases in 2021 comes in at $93.3 million. On average, the number of offenses grows 41 percent every year, it said. Further, wallets and exchange breaches are the most common type of attack in the crypto space, with 126 attacks recorded in the last ten years.