Trezor Has Seen ‘Significantly’ Higher Interest in Self-Custody Amid Ongoing Crypto Turmoil

Celsius Network Custody Exchange Wallet

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Sead Fadilpašić

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Sead Fadilpašić

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Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

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June 25, 2023

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Major hardware wallet maker Trezor said they have noticed higher interest in their devices following a string of crypto company meltdowns and centralized exchanges suspending withdrawals.

According to a company spokesperson, bitcoin (BTC) and crypto holders are “getting nervous about holding their coins with custodians and are exploring self-custody options.”

“As a result, we have seen a significant increase in interest in Trezor devices,” the company told Cryptonews.com, without providing specific numbers, explaining that they “don’t share these internal data.”

That said, there is still work to be done in educating people about what it means to hold one’s coin on a crypto exchange, instead of being the only person able to access and control them.

Per Trezor,

“While the increase in interest is noticeable, most people still remain indifferent to the risk they face when holding their coins on an exchange. Our long-term goal, therefore, is to teach people the necessity of self-custody: if you don’t control your own keys, you don’t really own your coins.”

Meanwhile, Trezor’s rival and major hardware wallet maker Ledger did not reply to Cryptonews.com‘s request for comment.

Trezor’s observations come, not simply during a particularly harsh crypto bear market, but also during the massive turmoil in which a number of centralized crypto companies have found themselves, struggling not to sink and drown. 

In the fallout, we saw companies halt withdrawals and transfers, drawing criticism from their users and the wider community – but also dragging down related companies due to a resulting contagion. Perhaps most prominently, the troubled crypto fund Three Arrows Capital, crypto platform Voyager Digital, and most recently crypto lender Celsius have all filed for bankruptcy. According to the court documents, several Celsius-related entities, including Celsius mining, also filed for bankruptcy.

Numerous individuals have said that they plan to stop using centralized exchanges altogether and start keeping all of their cryptoassets on hardware wallets, stating that these recent events (and in many cases, the funds they lost as the companies holding them failed) have destroyed their trust in centralized entities.

Nick Saponaro, founder and CEO of crypto payment platform Divi Labs, commented that, with Celsius filing for bankruptcy, “there is now a big question mark as to whether its customers will be able to retrieve their investments,” adding:

“Self-custody is no longer a choice but an imperative.”

Saponaro argued in a comment sent to Cryptonews.com that the point of crypto is to give each individual what they are entitled to: financial sovereignty. Yet, people will give up that sovereignty and control over their own fund as long as they use centralized services, he said, and added:

“There has never been a more important time to ensure people understand the risks of using centralised exchanges and consider other options that will ensure they continue to have access to their coins and don’t lose their entire portfolios, should an exchange go bankrupt.”

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Learn more:
– CEL Jumps While Celsius’ Bankruptcy Protection Filing Reveals a Billion-Dollar Hole in Balance Sheet
– Today in Crypto Turmoil: Sun Readies USD 5B Spend, Celsius’ Dealings ‘Exposed,’ CoinFlex Heads to HK Courts

– Trezor Ditches a Controversial KYC Feature, Plans Features to ‘Cut Off Regulatory Overreach’
– Here’s How You Can Protect Yourself Against Phishing as Trezor is Attacked

– 5 Risks to Know Before Using Centralized Crypto Lending Platforms
– DeFi Suffers from Too Much Centralization, What Can Be Done?