Bitcoin family to transfer $1M in BTC to decentralized exchanges
Taihuttu pointed out that one of the advantages of using decentralized exchanges is that custody is always retained by the crypto owner.
Fri, 02 Dec 2022, 07:07 am UTC
Even the Bitcoin family’s crypto strategy has been slightly affected by the FTX incident. While the family remains confident and bullish on BTC, they’re just changing how they store a portion of their crypto holdings after the collapse of Sam Bankman-Fried’s crypto exchange.
The Bitcoin family, composed of the patriarch Taihuttu; his wife, Romaine;, and their three daughters, became famous when they liquidated all of their assets including their 2,500-square-foot home in 2017 and used the proceeds to buy BTC back when it was still trading at around $900. Since then, the family stored the crypto holdings in three main methods: hardware wallets (cold storage) hidden in vaults scattered on four continents, decentralized exchanges (DEX) like Uniswapp, and centralized exchanges (CEX) such as Kraken and Bybit.
The Dutch family of five is proactively putting $1 million in cryptocurrency into DEXs, which enable users to retain custody of their tokens. The decision to transfer a substantial portion of their crypto assets came after FTX’s collapse and various as digital asset brokers, lenders, and exchanges continue to declare bankruptcy, locking up consumer assets in the process.
“For me, bitcoin is still about freedom, and decentralized currency should be able to be used by everyone in the world without needing to do KYC or any other regulatory stuff,” the family’s patriarch, Didi Taihuttu, told CNBC. He is referring to the know-your-customer (KYC) requirements imposed by many centralized platforms such as Coinbase. On the other hand, decentralized exchanges do not require users to provide an ID or a bank account.
Taihuttu pointed out that one of the advantages of using decentralized exchanges is that custody is always retained by the crypto owner. “You never send your bitcoin to an exchange. Your bitcoin stays in your own wallet, meaning you have complete custody of your coins,” Taihuttu explained. “You connect to a DEX, and by making that connection, you trade out of your own wallet.”
This fact is critical in case an exchange run into some trouble. “If the DEX collapses, it doesn’t matter, because the bitcoin are always in your own wallet,” he said.
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