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A study by CoinGecko looking at crypto storage behavior after the FTX demise found that 8 in 10 crypto investors keep their digital assets in hot wallets.
Meanwhile, according to the survey, 7 out of 10 respondents said they have assets on centralized exchanges, and 3 out of 10 said they use cold wallets. report.
investigation
The survey was conducted between December and January 2022 and collected responses from 421 individual investors. The report did not identify whether participants used more than one type of storage.
The popularity of self-custody hot wallets reflects community sentiment following the collapse of FTX. However, the preference rate for wallets associated with centralized exchanges is still fairly high.
The report justifies this rate by saying it relates to the current dominance of centralized exchanges (CEX) over decentralized exchanges. The report states:
“Most crypto holders continue to rely on on-ramp and off-ramp centralized exchanges, not just for buying and selling crypto, so holders prioritize convenience over security.”
Although surveyed participants preferred to keep their cryptocurrencies refrigerated, the percentage was not strong enough to suggest a shift in community sentiment, the report notes.
self custody wallet
crypto slate A November 2022 study reveals that the FTX crash has pushed Bitcoin (BTC) reserves into self-custody wallets. By November 2022, the amount of BTC held in self-custody wallets had reached almost 15 million, accounting for 78% of the circulation at that time.
The demise of FTX has also prompted cryptocurrency organizations to turn to self-custody services. Crypto exchange platform Robinhood began developing its own self-custody wallet in December 2022 and launched in January.
Additionally, cryptocurrency firm Juno publicly advised users in January to switch to self-management or sell their virtual assets.
“We highly recommend withdrawing your crypto to a self-custody wallet or selling your crypto to cash in your Juno checking account…”
The shift to self-management has also increased the use of refrigerated storage over the same period. According to December 2022 data, 450,000 BTC held in exchanges or hot wallets prior to 2022 were moved to cold storage throughout the year.
