It appears that the spat between two of the biggest names in the Twitter crypto space is yet to end. A recent tweet by one of the warring parties has now opened up a discussion regarding the merits and demerits of centralized crypto exchanges and personal crypto wallets. But it all began with a tweet by Elon Musk, the billionaire CEO of Tesla, on Monday.
In his tweet, Musk had asked what the issue was with the currency DOGE withdrawals on Binance. He tagged Binance to the tweet, which he ended by saying the whole thing was “shady”. Binance replied 30 minutes later. The top crypto exchange said that there was nothing shady about the situation and that it was working to resolve it.
But Musk fired back with another tweet in which he said that Binance didn’t take early action to forestall the problem. The spat ended with the CEO of Binance, Changpeng Zhao, using his personal Twitter account to engage Musk on the thread. It appeared that Musk had had his say, but the world’s first centibillionaire may just be getting started.
Centralized Exchanges Vs Private Keys
On centralized exchanges such as Binance, crypto owners do not have full control of their digital assets because they don’t have private keys to the assets’ wallets. This has been a topic of debate for years now as many crypto owners have advocated for centralized exchanges to provide private keys for them. The so-called “self-custody” is a concept that is gaining popularity.
But centralized crypto exchanges have a policy of holding the crypto assets of their clients on wallets provided by them. This policy is due to a belief that clients might lose their assets if their private keys get compromised from their end. Crypto exchanges, therefore, believe that the assets are safer when stored on their wallets without providing private keys to them.
Elon Musk has previously spoken for self-custody to be implemented on centralized crypto exchanges. First, in February, Musk told his Twitter followers that any crypto exchange that does not offer self-custody must be “avoided”. Now, 9 months later, he has taken a swipe at Binance by endorsing a tweet that called for centralized exchanges to allow crypto owners to hold private keys.
The tweet said that it was Shiba Inu’s goal to liberate crypto owners from the situation in which centralized exchanges such as Binance and Robinhood have put them in (referring to the lack of ownership of private keys). Someone else retweeted the tweet and commented on it. Musk then replied saying “exactly”.
No Response from Binance
Although Musk did not tag Binance or Zhao in that tweet, it is safe to say that he had in mind the recent spat with them when he tweeted. Neither the Binance official account nor Zhao has replied to Musk as of writing.
Binance, in a recent update about the DOGE withdrawal issue, said that it could take a week or more to rebuild the DOGE wallet that it uses because it has been compromised by the software update glitch.