CZ’s call for “self-guarding” means this for Binance and its future

CZ’s call for “self-guarding” means this for Binance and its future

The world’s largest exchange, Binance, has announced an investment that sounds rather odd. This was mostly because it could drive users away from the platform.

Binance Labs, the on-chain independent incubator and venture capital arm of Binance, has revealed a strategic investment in hardware wallet maker NGRAVE. Additionally, the investment appears to be an attempt to capitalize on renewed calls for self-care in the industry.

Greater push for self-guard

Recent developments in the crypto market have led to distrust of centralized exchanges. The crypto community has been trying to figure out the downfall of FTX. This most certainly left several struggling crypto firms in its wake.

The suspension of withdrawals on several crypto exchanges and lending platforms, including BlockFi and Genesis, has given centralized platforms a bad name. “Not your keys, not your crypto” was a phrase that was first popularized during Celsius Network’s bankruptcy proceedings. This basically meant that crypto ownership was essentially removed once an investor transferred them to a centralized exchange.

This sentiment witnessed a dramatic reaffirmation after the collapse of FTX, which caused liquidity issues for several other crypto firms. Retail investors who have fallen victim to sudden withdrawal suspensions are turning to cold storage for their crypto. These include hardware wallets, especially in light of recent events.

NGRAVE’s deal with Binance

NGRAVE is a Belgian blockchain and digital asset security provider that offers hardware wallets for crypto holders. According to blog post by Binance, the exchange will lead the wallet maker’s Series A funding round. The exact amount of the investment was not disclosed. Yi He, Co-Founder of Binance and Head of Binance Labs, said:

“Self-custody wallets are one of the most secure methods of storing digital assets and through our investment in NGRAVE, we seek to continue supporting innovative startups that improve user security.”

Binance chief Changpeng Zhao took Twitter earlier this month to share his thoughts on the renewed calls for self-care in the wake of the unrest caused by FTX. He said,

“Personal custody is a basic human right. You are free to do so at any time. Just make sure you do it right.

With the NGRAVE deal, Zhao’s company is now ready with a “right way” for its users to access cold storage for their crypto.

CZ joins Buterin’s vision for safe CEX

Ethereum co-founder Vitalik Buterin shared his vision for a secure centralized exchange (CEX) on Twitter last week. This would feature cryptographic proof of on-chain funds, in addition to proof of creditworthiness. Changpeng Zhao replied to Buterin’s tweet, indicating that he was working on the idea.

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