Elon Musk Encourages People to Ditch Crypto Exchanges Like Binance

Musk took a stance against the exchanges.

A person mused about breaking the ecosystem's dependence on CEXs like Binance and [R]obinhood.

Then Musk chimed in with a reply.

A coin wallet has both public and private keys. One type is known to others, while the other is not. The private key is the only one that can unlocked your funds.

Customers aren't actually in possession of the keys when buying cryptocurrencies through an exchange.

Exchanges may make the process of buying, owning, and trading cryptocurrencies easier, but they don't issue real credentials to customers.

Their approaches to wallet are very different. While other companies like Robinhood don't support cryptocurrencies, they do support exchanges on the marketplace for customers.

The majority of them keep the security of your coin in their hands.

That can be a bad thing. Multiple exchanges have been involved in scandals. The Justice Department and the Internal Revenue Service are looking into the case of Binance.

The Securities and Exchange Commission charged Robinhood for misleading customers about revenue services and failing to execute services last year.

Customers were left scrambling to cash in onmeme stocks when the exchange went dark.

One of the worst IPOs in US history was suffered by the company when it went public in July.

Customers are willing to put their trust in the exchanges if they can make a lot of money. The approach comes with a lot of negatives, especially considering the huge regulatory vacuum they operate within.

It sounds like Musk feels the same way.

A teen hacker was arrested for stealing $36 million in cryptocurrencies.

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