{"id":2041,"date":"2022-12-01T18:21:40","date_gmt":"2022-12-01T18:21:40","guid":{"rendered":"https:\/\/18.216.197.114\/blog\/?p=2041"},"modified":"2023-01-04T09:45:28","modified_gmt":"2023-01-04T09:45:28","slug":"lessons-learned-from-ftx-fiasco-and-importantce-of-self-custody-of-crypto","status":"publish","type":"post","link":"https:\/\/www.rocketx.exchange\/blog\/lessons-learned-from-ftx-fiasco-and-importantce-of-self-custody-of-crypto\/","title":{"rendered":"After the FTX fiasco, Self-custody is the way forward, says RocketX co-founder &#038; CTO Davinder Singh"},"content":{"rendered":"\n[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px|||||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;-33px|auto||auto||&#8221; custom_padding=&#8221;0px|||||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_cta button_text=&#8221;Click Here&#8221; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<p><em><span style=\"font-weight: 400; font-size: large;\">FTX has taken a toll on investors playing with their hard-earned cryptocurrencies. How can you rely on CEX to keep your tokens in third-party custody? <\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400; font-size: large;\">At RocketX, we always want our users to be the complete owners of their funds by providing 100% asset ownership and transparency. The aim is to save their valuable tokens with full access. Check why crypto savvy\u2019s demanding self-custody of tokens.<\/span><\/em><\/p>[\/et_pb_cta][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_2,1_2&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_code _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.rocketx.exchange\/blog\/lessons-learned-from-ftx-fiasco-and-importantce-of-self-custody-of-crypto\/#The_critical_admonishment_to_Move_into_DeFi\" title=\"The critical admonishment to Move into DeFi\">The critical admonishment to Move into DeFi<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.rocketx.exchange\/blog\/lessons-learned-from-ftx-fiasco-and-importantce-of-self-custody-of-crypto\/#Crypto_turns_to_self-custody\" title=\"Crypto turns to self-custody\">Crypto turns to self-custody<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.rocketx.exchange\/blog\/lessons-learned-from-ftx-fiasco-and-importantce-of-self-custody-of-crypto\/#Your_Keys_Your_Tokens\" title=\"Your Keys Your Tokens\">Your Keys Your Tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.rocketx.exchange\/blog\/lessons-learned-from-ftx-fiasco-and-importantce-of-self-custody-of-crypto\/#Nothing_is_too_big_to_fail\" title=\"Nothing is too big to fail\">Nothing is too big to fail<\/a><\/li><\/ul><\/nav><\/div>\n[\/et_pb_code][\/et_pb_column][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_image src=&#8221;https:\/\/www.rocketx.exchange\/blog\/wp-content\/uploads\/2022\/12\/Self-Custody-of-Crypto.-Own-Your-Keys-01.png&#8221; alt=&#8221;The FTX collapse taught an important lesson about self-custody of crypto.Only if you own the private kays, you own your crypto. With RocketX exchange, you can access CEXs while you own your private keys.&#8221; title_text=&#8221;FTX Collapse lesson: Self Custody of Crypto. Own Your Keys&#8221; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<p><span style=\"font-weight: 400;\">The<strong> FTX debacle<\/strong> left investors destitute. Consequently, the attitude surrounding the cryptocurrency market has become plainly sour, with investors withdrawing and converting their tokens to fiat.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">FTX, the world\u2019s second-largest cryptocurrency exchange, was <strong>deemed watertight<\/strong>. The sudden collapse put investors in peril. The prominent crypto CEX failed to survive the bank run, leaving investors and employees in trouble.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Nov 6th to 14th were remarked as dark days in FTX history<\/strong>. <em>The Exchange has suspended customer withdrawals, filed chapter 11 bankruptcy, and is estimated to have an<strong> $8 billion to $10 billion shortfall in consumer funds<\/strong>. Finally revealed what seems to be misconduct by the Alameda\/FTX.<\/em><\/span><em>\u00a0<\/em><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_cta button_text=&#8221;Click Here&#8221; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;e433b23a-a4e1-4163-99bc-36a0ce2f4c4f&#8221; global_colors_info=&#8221;{}&#8221;]<p><span style=\"font-weight: 400; font-size: large;\">The incident destroyed the industry reputation that has been solid for many years and increased the danger of credit contagion, compelling the crypto industry to transfer the tokens to self-custody. Moreover, there is a renewed emphasis on the exchange <strong>Proof-of-Reserves.<\/strong><\/span><\/p>[\/et_pb_cta][et_pb_text _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;32px||36px|||&#8221; global_colors_info=&#8221;{}&#8221;]<h2><span class=\"ez-toc-section\" id=\"The_critical_admonishment_to_Move_into_DeFi\"><\/span><span style=\"font-weight: 400;\">The critical admonishment to Move into DeFi<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <strong>failure of centralized projects<\/strong> such as Celsius Network, Voyage Digital, 3AC, and now\u00a0 Bankman-Fried&#8217;s FTX CEX Empire warns crypto aficionados to move into DeFi because non of these platforms provide complete ownership of assets or transparency to customers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The scenario forced the industry to understand the necessity of decentralization and clarity in crypto. The aforementioned collapsed brands replicate centralized institutions in the crypto industry. Now, the irony is these tragic disappointments <strong><em>drove the industry to prefer the decentralized projects that provide complete asset ownership <\/em><\/strong>to the token holders.<\/span>\u00a0<\/p>\n<p><span style=\"font-weight: 400;\">The advantages of<strong> transparency, censorship resistance, permissionless and self-sovereign asset custody<\/strong>\u2014are upheld by DeFi platforms. Hence, these platforms have been operating without a hitch, allowing customers to liquidate their cryptocurrency holdings or invest and manage their tokens with total control.\u00a0<\/span><\/p>[\/et_pb_text][et_pb_button button_url=&#8221;https:\/\/t.me\/RocketXexchange&#8221; url_new_window=&#8221;on&#8221; button_text=&#8221;Join Us on Telegram&#8221; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;05fec754-b9ad-4caf-9e84-fc40bbabff89&#8243; custom_margin=&#8221;||38px|||&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_button][et_pb_text _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<h2><span class=\"ez-toc-section\" id=\"Crypto_turns_to_self-custody\"><\/span><span style=\"font-weight: 400;\">Crypto turns to self-custody<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><strong>Every failure offers a new lesson<\/strong>; that\u2019s how the crypto industry is molded. The letdown of FTX is an aha lesson for investors to shift their valuable tokens out of exchanges and <strong>self-custody <\/strong>wallets. According to reports, <\/span><a href=\"https:\/\/twitter.com\/glassnode\/status\/1592248819559067648?s=20&amp;t=e-H__pJD0lcc0ELTAKKEFA\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Bitcoin balances<\/span><\/a><span style=\"font-weight: 400;\"> in centralized crypto exchanges plunged dramatically. <\/span><\/p>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/www.rocketx.exchange\/blog\/wp-content\/uploads\/2022\/12\/Interoperable-own-you-crypto-01-01.png&#8221; title_text=&#8221;Interoperable own you crypto&#8221; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_image][et_pb_text _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<p><span style=\"font-weight: 400;\"><strong>Industry leaders warned self custody amidst FTX chaos.<\/strong> According to RocketX co-founder:<\/span><\/p>[\/et_pb_text][et_pb_testimonial author=&#8221;Davinder Singh&#8221; job_title=&#8221; Co-founder and CTO&#8221; company_name=&#8221;RocketX&#8221; portrait_url=&#8221;https:\/\/www.rocketx.exchange\/blog\/wp-content\/uploads\/2022\/12\/Davinder-Singh.png&#8221; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;f90d90d9-ee90-4873-a8a1-65b002e7709a&#8221; global_colors_info=&#8221;{}&#8221;]<p><em><span style=\"font-size: large;\"><span style=\"font-weight: 400;\">\u201cIt is advisable to switch to non-custodial wallets where you can ensure that your tokens are safe rather than discovering that you have no more Bitcoins left in your custodial wallets. You cannot always rely on CEX to keep your digital assets; the FTX incident shows how CEX can own and control your tokens\u201d.<\/span><\/span><\/em><\/p>[\/et_pb_testimonial][et_pb_text _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<p><span style=\"font-weight: 400;\">The situation has resulted in a substantial increase in the user count of brands like RocketX. Users are now able to <strong>trade on all major CEX and DEX exchanges while maintaining full ownership<\/strong> of their digital assets, thanks to RocketX&#8217;s invention, which has emerged as a boon to crypto fanatics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The uncertainty prevailing in the crypto community urged investors to protect their tokens to <strong>prevent fraud<\/strong> and <strong>third-party ownership<\/strong>. Investors of Behemoths like Bitcoin panicked and moved their BTC to self-custody wallets. Reports indicate a <em><strong>surge in BTC balance in the non-custodial wallets.\u00a0<\/strong><\/em><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Self-custody wallets have emerged as a human right in crypto now. It offers the token <strong>owners control of their private keys<\/strong>. The custodial wallet&#8217;s user-friendliness is no longer a factor in crypto investors&#8217; decisions to use them to store their millions or billions of dollar worth of BTC and ETH. The FTX catastrophe, followed by a series of centralized project failures, has taught them to safeguard their VDA in self-custody.<\/span><span style=\"font-weight: 400;\"><\/span><\/p>[\/et_pb_text][et_pb_cta button_text=&#8221;Click Here&#8221; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;e433b23a-a4e1-4163-99bc-36a0ce2f4c4f&#8221; custom_margin=&#8221;||43px|||&#8221; custom_padding=&#8221;13px||18px|||&#8221; global_colors_info=&#8221;{}&#8221;]<p><span style=\"font-weight: 400;\"><\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: large;\">The focus of the crypto industry as a whole turned to projects like <span style=\"color: #2af9ec;\"><a href=\"https:\/\/rocketx.exchange\/\" style=\"color: #2af9ec;\">RocketX<\/a><\/span>, a hybrid <a href=\"https:\/\/www.rocketx.exchange\/blog\/what-are-crypto-aggregators\/\">aggregator<\/a> that simplifies access to <strong>liquidity across 250+ CEX &amp; DEX<\/strong> via the most secure UI and APIs. <\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: large;\">The brand moved ahead of the scenario by facilitating complete ownership of digital assets welcoming crypto traders and investors to experience the <strong>privilege of decentralization<\/strong>.<\/span><\/p>[\/et_pb_cta][et_pb_text _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;||21px|||&#8221; global_colors_info=&#8221;{}&#8221;]<p>Finally, it&#8217;s crucial for investors to take some <strong>lessons from the FTX collapse<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Your_Keys_Your_Tokens\"><\/span>Your Keys Your Tokens<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The most crucial lesson from FTX is to store your assets in <strong>your own wallet<\/strong> rather than relying on an exchange to hold them for you.<\/p>\n<p><strong>Just HODL, as they say. In cold storage.<\/strong>\u00a0<\/p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;-25px|||||&#8221; custom_padding=&#8221;18px|||||&#8221; global_colors_info=&#8221;{}&#8221;]<h2><span class=\"ez-toc-section\" id=\"Nothing_is_too_big_to_fail\"><\/span>Nothing is too big to fail<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>FTX, the fourth-largest cryptocurrency exchange, wasn&#8217;t immune to the collapse. FTX appeared impregnable. <strong>No one is too large to fail, as seen by this<\/strong>.\u00a0 And in scenarios like these, if the custody of your tokens is with the exchange, <em><strong>you might never get them back, regardless of how large the exchange is!<\/strong><\/em><\/p>[\/et_pb_text][et_pb_divider _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||-26px|||&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_2,1_2&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; min_height=&#8221;589.5px&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_blog posts_number=&#8221;1&#8243; include_categories=&#8221;29&#8243; excerpt_length=&#8221;100&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_blog][\/et_pb_column][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_blog posts_number=&#8221;1&#8243; include_categories=&#8221;46&#8243; excerpt_length=&#8221;100&#8243; _builder_version=&#8221;4.18.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_blog][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"<p>FTX has taken a toll on investors playing with their hard-earned cryptocurrencies. How can you rely on CEX to keep your tokens in third-party custody? At RocketX, we always want our users to be the complete owners of their funds by providing 100% asset ownership and transparency. The aim is to save their valuable tokens with full access. Check why crypto savvy\u2019s demanding self-custody of tokens.<\/p>\n","protected":false},"author":5,"featured_media":2095,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","rank_math_lock_modified_date":false,"footnotes":""},"categories":[30],"tags":[102,59,65,82,99,103,104,101,100],"class_list":["post-2041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","tag-crypto-ownership","tag-decentralized-crypto-swap","tag-decentralized-exchange","tag-decentralized-swap-exchange","tag-ftx","tag-ftx-collapse","tag-ftx-fiasco","tag-not-your-keys","tag-self-custody","et-has-post-format-content","et_post_format-et-post-format-standard"],"_links":{"self":[{"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/posts\/2041"}],"collection":[{"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/comments?post=2041"}],"version-history":[{"count":23,"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/posts\/2041\/revisions"}],"predecessor-version":[{"id":2630,"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/posts\/2041\/revisions\/2630"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/media\/2095"}],"wp:attachment":[{"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/media?parent=2041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/categories?post=2041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rocketx.exchange\/blog\/wp-json\/wp\/v2\/tags?post=2041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}