Elon Musk says Dogecoin owners need to get rid of centralized exchanges

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Elon Musk, CEO of Tesla, backed the idea for investors to keep their crypto assets like Dogecoin instead of relying on centralized exchanges like Binance and Robinhood. These exchanges make it easy to sell and buy cryptocurrencies, but they also hold custody of those assets – something Musk doesn’t seem to support. He gave his opinion on Twitter while replying to another post on the same topic. Dogecoin was recently ranked as the most wanted cryptocurrency in the US.

Bill Lee, the founding partner of West Coast Holdings and an investor in Musk’s company, tweeted that they shouldn’t consider their crypto holdings as their own unless the wallet keys were not in their possession.

In a one-word answer, Musk supported the idea and wrote: “Exactly”.

While Musk did not elaborate on his point of view, it is not surprising that the Doge supporter is in favor of people holding their own assets rather than leaving them lying on centralized exchanges.

Scammers fishing for meaty targets often view the centralized exchange as a target point. Hackers keep trying to break into the servers of these exchanges and steal the stored cryptocurrencies.

However, using a private crypto wallet reduces the risk of being hacked or injured – while also allowing investors to hold their own assets.

As cryptoculture gains momentum around the world, nefarious scammers have targeted investors from all angles.

For example, Robinhood recently announced that its servers had been attacked by an unauthorized third party earlier this month.

Earlier this week, the official Shiba Inu Token Twitter account warned investors that cyber criminals were replying to general SHIB-related posts and posing as official accounts related to the meme-based dog coin in an attempt to lure unsuspecting people into their scams.

In October, a major hack attack cost the Ethereum-powered credit protocol, Cream Finance, worth $ 130 million (roughly Rs 972 billion) in crypto assets.

The total crypto crime in 2020 amounted to around 10.52 billion US dollars (about 79.194 billion rupees), a report had revealed in early April.

The same report had also highlighted that scams and scams that have plagued the crypto space are a major problem, accounting for 67.8 percent of all cryptocurrency crime in 2020.

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.

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