Trust in centralized cryptocurrency exchanges is waning as investors recall major custodial failures, according to a survey by Cointelegraph Research. Notable incidents include Mt. Gox's loss of approximately 850,000 BTC, QuadrigaCX's $169 million shortfall, and FTX's $8 billion deficit in customer funds. The survey reveals that 65% of users trust exchanges less than they did four years ago.
The survey also highlights a growing trend towards self-custody, with 57% of respondents citing direct ownership of private keys as the primary reason for moving assets off exchanges. This shift raises questions about whether the crypto industry fully comprehends the responsibilities associated with self-custody, as more investors opt to manage their own digital assets.
Investor Trust in Centralized Exchanges Declines Amid Custodial Failures
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