Elon Musk advises to avoid crypto wallets that do not provide customers with their own private keys.
Long seen as a drawback to any financial crypto service, Tesla's CEO, who's a Bitcoin supporter and Doge jester, just supported experts' opinions.
Targeting custodial crypto wallet, Freewallet, Musk suggested that lack of private keys eroded safety and freedoms of crypto users. Instead, Freewallet should give users control over their funds by issuing private keys, the CEO seemed to suggest.
And, he's not alone. Many agree that having a centralized model in crypto storage is damaging. Hence early attempts by exchanges and wallets to defend against hacks issuing private keys instead, passing part of the blame to consumers, granted, but also boosting overall security.
However, Freewallet does not agree, and it makes a fair point. Responding to criticism, the platform said: “The accusations relating to this fact are never followed by a support ticket. People saying ‘stay away from Freewallet’ express prejudice towards custodial wallets because they believe that a ‘true’ blockchain wallet is supposed to leave the management of private keys to the user (no). However, there are other services (like exchanges) that have access to user private keys.”
Despite criticism from Musk, though, and the fact that recreational and everyday crypto holders prefer private keys, the truth of the matter is that 92% of institutional investors would much rather keep their crypto funds on exchanges.
Meanwhile, the crypto gaming bonanza continues with services such as Bitcasino, 1xBit and FortuneJack offering you complete control over your funds.
