Connect with us
DAPA Banner
DAPA Coin
DAPA
COIN PAYMENT ASSET
PRIVACY · BLOCKDAG · HOMOMORPHIC ENCRYPTION · RUST
ElGamal Encrypted MINE DAPA
🚫 GENESIS SOLD OUT
DAPAPAY COMING

Crypto World

Aave Wallet Growth Hits 5-Year High Even as Standard Chartered Revises Crypto Forecasts

Published

on

Aave Wallet Growth Hits 5-Year High Even as Standard Chartered Revises Crypto Forecasts

Aave logged its largest single-day wallet growth in nearly five years, with 1,806 new addresses created on Ethereum on June 30, according to on-chain analytics firm Santiment.

The surge lines up with a $3,500 price target on Aave (AAVE) from Standard Chartered, a bank that has repeatedly cut its own Bitcoin (BTC) and Ethereum (ETH) forecasts this year.

A Familiar Pattern of Forecasts

Standard Chartered initiated coverage of AAVE with a target implying nearly 50 times upside by 2030, built on an Aave $3,500 forecast tied to tokenized assets flooding decentralized finance (DeFi). The bank made a similar call on Uniswap (UNI) weeks earlier, and that forecast also triggered a jump in Uniswap network activity before it cooled off.

Advertisement

The same research desk cut its 2026 Bitcoin target from $150,000 to $100,000 and slashed its Ethereum price target 47%, from $7,500 to $4,000, within the same three-month stretch.

“We forecast significant upside for digital asset token prices into year-end, and we think Aave has moved beyond the April incident.”
Geoff Kendrick, Standard Chartered

That April incident was the KelpDAO exploit, which drained roughly $292 million and fed a KelpDAO exploit fallout that briefly cut Aave’s deposits nearly in half. Aave has since restarted its AAVE buyback program under Aavenomics 3.0, confirmed by founder Stani Kulechov, adding a direct revenue-to-token mechanism behind the current move.

Whether new wallets convert into deposits and borrowing, rather than short-lived attention, will decide if Aave’s growth outlasts Standard Chartered’s own forecasting record.

Advertisement

The post Aave Wallet Growth Hits 5-Year High Even as Standard Chartered Revises Crypto Forecasts appeared first on BeInCrypto.

Source link

Advertisement
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Trump’s American Bitcoin Drops 8.4% Before Reverse Split to Stay Listed

Published

on

Crypto Breaking News

American Bitcoin (ABTC) is set to complete a 1-for-15 reverse stock split as it tries to remain listed on Nasdaq, a move that arrives as the company’s shares sink to fresh lows. The miner said the split becomes effective after the market closes on Thursday and will be reflected in trading on a split-adjusted basis when the market opens Monday, with the stock continuing to trade under the ABTC ticker.

Under the plan, every 15 shares of the company’s Class A and Class B common stock will be consolidated into a single share. American Bitcoin expects that its share count will fall from more than 1 billion outstanding shares to about 73 million. According to the company’s release, shareholders approved the reverse split on June 22, and the company now aims to satisfy Nasdaq’s minimum bid rules.

Key takeaways

  • ABTC’s 1-for-15 reverse stock split takes effect after Thursday’s market close and begins trading on a split-adjusted basis on Monday.
  • American Bitcoin expects its outstanding shares to drop from over 1 billion to roughly 73 million while keeping the ABTC ticker.
  • The company’s stated reason is to maintain compliance with Nasdaq’s requirement that the stock not trade below $1 for 30 consecutive sessions.
  • Shares fell to an all-time low of 62 cents on Wednesday, down nearly 8.4% on the day, before a modest after-hours rebound.
  • The move reflects a broader pattern among crypto-related public companies using reverse splits to address prolonged weakness in share prices.

Reverse split scheduled to protect Nasdaq listing

Reverse stock splits are often viewed by investors as a sign that a company is struggling to keep its stock above exchange listing thresholds. In American Bitcoin’s case, the company explicitly tied the action to Nasdaq’s minimum bid requirements, which can lead to delisting if a stock closes below $1 for 30 consecutive trading days.

American Bitcoin said it is implementing the consolidation to support its share price and maintain compliance with those rules. The company also confirmed that it would continue trading under the ABTC ticker through the process.

Shares hit a record low as crypto equities remain under pressure

Wednesday’s trading brought another sharp decline for ABTC. Shares fell nearly 8.4% to close at an all-time low of 62 cents. After the close, the stock reportedly edged higher by about 4.5% to 65 cents in after-hours trading.

Advertisement

The stock’s broader performance has been weak. American Bitcoin is down more than 63% year-to-date and has fallen more than 92% since it began trading on Nasdaq on Sept. 3, when the company launched through a merger process involving a publicly listed crypto mining entity.

American Bitcoin was founded earlier this year by Donald Trump Jr. and Eric Trump, according to the company’s background described in the reporting. The business merged with Nasdaq-listed Gryphon Digital Mining to go public, with the Trump brothers and crypto miner Hut 8 together holding roughly 98% of the combined company.

Financial results and market turbulence weigh on the stock

American Bitcoin’s share weakness is unfolding amid a wider downturn affecting parts of the crypto market and the equities that trade as proxies for it. In May, the company reported that it lost $81.7 million in the first quarter, with the figure cited in earlier coverage from Cointelegraph.

Reverse splits can help companies avoid immediate delisting pressures, but they do not address underlying business fundamentals. For traders, that means investors may still be exposed to the same operational risks—especially in a sector where revenue can be influenced by factors such as mining economics, digital asset prices, and cost structures.

Advertisement

Bitcoin itself was trading around $60,000 in early Thursday trading, down 32% so far this year and more than halved from its October peak of above $126,000, according to CoinGecko.

Broader trend: crypto firms use reverse splits to stay listed

American Bitcoin is not alone in turning to reverse stock splits to manage listing compliance. Another example cited in the reporting is Bitcoin treasury company Nakamoto, which completed a 1-for-40 reverse stock split in May after its shares reached a low of 16 cents in April, also in an effort to remain on Nasdaq.

The pattern is notable because it highlights a recurring tension for crypto-linked equities: when digital assets or mining sentiment deteriorate, smaller-cap listed firms can quickly slip below exchange price floors. Reverse splits can temporarily alter the math of share price—though they leave investors’ proportional exposure unchanged in most cases—while companies work to stabilize operations or regain market confidence.

For ABTC holders, the immediate practical impact is timing. With the split scheduled to take effect after Thursday’s close and begin reflecting on Monday’s open, investors will want to watch how the market recalibrates around the new share count and whether trading volume or liquidity dynamics change after the adjustment.

Advertisement

Going forward, the key unknown is whether the company can sustain its share price long enough to satisfy Nasdaq’s ongoing $1 minimum-bid condition. The next few trading weeks will be the real test: the exchange compliance clock runs on consecutive closing prices, so investors should track ABTC’s daily closes after the effective date to see whether the reverse split achieves its intended listing protection.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

Source link

Advertisement
Continue Reading

Crypto World

dYdX Launches Arcus, a DEX Pairing Stock Tokens With Perpetuals on Robinhood Chain

Published

on

dYdX Launches Arcus, a DEX Pairing Stock Tokens With Perpetuals on Robinhood Chain


dYdX Labs launched Arcus on Wednesday, a decentralized exchange that combines tokenized stock trading with perpetual futures. Founder Antonio Juliano announced the launch on X, built jointly with Robinhood Crypto. Arcus runs on Robinhood Chain, the EVM-compatible layer 2 that Robinhood opened to… Read the full story at The Defiant

Source link

Continue Reading

Crypto World

LINE NEXT unveils Unifi Pay for zero-fee stablecoin payments

Published

on

Crypto ETFs are here to stay, downturn be damned

LINE NEXT has opened developer pre-registration for Unifi Pay ahead of a planned global launch in the third quarter, with the payment infrastructure set to support USDT, JPYC and IDRP through its Unifi stablecoin wallet.

Summary

  • LINE NEXT has opened developer pre-registration for Unifi Pay ahead of its planned global launch in the third quarter.
  • Unifi Pay will support USDT, JPYC and IDRP, with users in Japan and Indonesia able to top up local stablecoins directly from bank accounts after identity verification.
  • The service offers zero payment fees, an average settlement of about one second, and an SDK that lets developers create payment pages in about 10 minutes.

According to a CoinPost report, LINE NEXT, the U.S.-based affiliate of LINE Yahoo, announced on June 30 that Unifi Pay will be launched globally after a beta phase that handled 100 billion Korean won in cumulative payments and settlements over the past year. 

The company, which has access to LINE Yahoo’s 300 million users, is building the service on its Unifi stablecoin wallet and has started accepting pre-registrations from global developers before the official rollout.

Advertisement

Unifi Pay will support Tether’s USDT, the Japanese yen-denominated JPYC and the Indonesian rupiah-denominated IDRP at launch. In Japan and Indonesia, users will be able to complete online identity verification and directly top up JPYC or IDRP from their bank accounts. LINE NEXT also said it plans to add local stablecoins in more countries, depending on what each market’s regulations allow.

Unifi Pay offers wallet-based settlement with zero payment fees

Using a wallet-based structure, Unifi Pay directly connects users and suppliers and removes payment fees from the transaction process, according to the announcement. LINE NEXT said the service offers an average settlement speed of about one second.

The company will also provide a function that allows settlement funds to be sent directly to bank accounts through connected crypto exchanges and blockchain remittance solutions. This gives suppliers and developers a path to move stablecoin payments into bank accounts after receiving funds through the wallet.

Advertisement

For developers, AI builders, and creators, LINE NEXT is introducing the Unifi Pay SDK to simplify the process of adding global payments. The company said the SDK uses an A2A, or Agent-to-Agent, task execution method for AI agents, allowing a payment page to be created in about 10 minutes through a single command input.

Developer companies that keep payment proceeds in the wallet may receive annual rewards of up to 5%, depending on the type of stablecoin used. LINE NEXT said the reward model is tied to stablecoin holdings inside the wallet.

The beta version of Unifi Pay recorded 100 billion Korean won in cumulative payment and settlement volume over the past year, equal to about 10 billion Japanese yen based on the announcement’s conversion rate of 1 won to 0.1 yen. LINE NEXT CEO Youngsu Ko said the company plans to establish Unifi Pay as a payment infrastructure that connects developers, creators, and users around the world through its developer tools.

The planned launch also follows LINE NEXT and Kaia’s earlier stablecoin work through Project Unify, which was announced during Korea Blockchain Week in September 2025. Kaia described Project Unify as a stablecoin super-app designed to bring payments, yield, on/off-ramps and access to more than 100 decentralized apps into LINE Messenger, which the company said had nearly 200 million monthly active users across Japan, Taiwan, Thailand and Indonesia.

Advertisement

Kaia said at the time that Project Unify would support USD, JPY, KRW, THB, IDR, PHP, MYR and SGD at launch, while offering developers and issuers a Unify SDK with a focus on regulatory compliance, especially in South Korea. The project followed the 2024 merger of LINE’s Finschia and Kakao’s Klaytn into Kaia, which has described itself as Asia’s stablecoin orchestration layer.

Source link

Advertisement
Continue Reading

Crypto World

Trump Signals Progress in Us-Iran Talks as Oil Falls and Crypto Markets Advance

Published

on

Crypto Breaking News

Diplomatic discussions between the United States and Iran gained fresh momentum after new comments from President Donald Trump. The latest developments supported gains across several financial markets while crude oil prices moved lower. Meanwhile, traders assessed the possibility of a longer negotiation period as discussions continued in Qatar.

US-Iran Negotiations Advance as Diplomatic Efforts Continue

The United States and Iran continued negotiations in Qatar with support from regional mediators. The latest round followed earlier diplomatic contacts aimed at reducing tensions between both countries. As a result, market participants responded quickly to signs of continued engagement.

President Donald Trump described recent diplomatic progress as positive during remarks on Wednesday. He also indicated that efforts surrounding Iran’s nuclear program continued moving in the intended direction. However, he stopped short of confirming that both sides had reached a final agreement.

US representatives Jared Kushner and Steve Witkoff remained involved in the talks held in Doha. Qatar and Pakistan continued supporting communication between both governments throughout the negotiations. Their involvement reflected ongoing regional efforts to maintain dialogue and reduce geopolitical risks.

Advertisement

Oil Declines While Gold and Crypto See Stronger Demand

Financial markets reacted soon after reports highlighted progress in the diplomatic discussions. West Texas Intermediate crude oil dropped more than two percent during the trading session. Consequently, the benchmark price slipped below the important $70 level.

Lower oil prices reflected expectations that supply disruptions could become less likely. Earlier tensions had increased concerns about energy exports across the Middle East region. Therefore, easing diplomatic risks encouraged selling pressure across crude oil markets.

Gold also attracted fresh demand during the same trading period. Market data indicated that the precious metal added more than $74 billion in value within one day. At the same time, digital assets recorded gains, with several major altcoins outperforming Bitcoin.

Earlier reports had linked geopolitical uncertainty with increased volatility across digital asset markets. Market analysts had already warned that diplomatic developments could influence short-term price movements. The latest positive headlines supported stronger buying activity across several cryptocurrency sectors.

Advertisement

Ceasefire Extension Expectations Increase as Talks Continue

Prediction platform Polymarket showed rising expectations for an extension of the current negotiation period. The platform estimated a 62% probability that discussions would continue beyond the existing 60-day framework. That reading reflected improving confidence that both sides would maintain diplomatic engagement.

Despite stronger expectations, negotiations still face several important stages before reaching a formal agreement. Diplomatic discussions often require additional meetings before both governments finalize key commitments. Therefore, current progress does not guarantee a lasting resolution.

The latest developments followed previous diplomatic activity involving Iran and Oman. Both countries had established a joint committee to discuss the Strait of Hormuz and broader ceasefire matters. Those earlier efforts created additional channels for communication before the current Doha meetings.

The Strait of Hormuz remains one of the world’s most important energy shipping routes. Any improvement in regional stability can influence global oil prices and broader financial markets. Consequently, diplomatic developments continue affecting commodity and digital asset trading activity.

Advertisement

Current negotiations have strengthened expectations that dialogue may continue beyond the initial timeline. However, any setback during future meetings could quickly change market sentiment across several asset classes. The coming diplomatic sessions may determine whether recent gains receive additional support or reverse in the near term.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

Source link

Advertisement
Continue Reading

Crypto World

Alibaba-affiliate Ant Group enters the humanoid robot market with 12 deals

Published

on

Alibaba-affiliate Ant Group enters the humanoid robot market with 12 deals

Zeroth W1, produced by Lexiang Technology, has obtained the Wall-E IP authorization for the Disney animated film “RoboCop” and will be unveiled at AWE 2026 in Shanghai, China on March 15, 2026.

Cfoto | Future Publishing | Getty Images

BEIJING — Alibaba-affiliate Ant Group is ramping up its move into humanoid robots.

Advertisement

Ant has led a 500 million yuan ($73.58 million) funding round in humanoid robotics company Zeroth, the start-up announced Thursday.

It’s the 12th company in the sector that Ant has invested in since the beginning of 2025, according to CNBC analysis of PitchBook data. The investments tracked by CNBC range from humanoid robotics companies Galaxea and Unitree, to parts and software start-ups such as Linkerbot, Hypershell and Genrobot AI.

After regulators halted Ant’s giant IPO in 2020, the operator of mobile payments app Alipay has launched a healthcare services app and released its own artificial intelligence models. In late 2024, Ant also established a humanoid robot subsidiary called RobbyAnt that subsequently developed its own robot.

Ant has released an AI and robotics-friendly version of its Alipay mobile payments service, which is an area Zeroth said it would like to cooperate in.

Advertisement

Monolith, Geely Capital, 37 Interactive Entertainment and Hua Capital also participated in Zeroth’s latest funding round. The pre-Series A raise brings total funds raised to 1 billion yuan.

The start-up’s founder, Guo Renjie, told CNBC that Zeroth focused on securing companies with experience in industries such as smartphone chips. He said the company’s robots currently use chips from Horizon Robotics.

Zeroth Robotics, known in China as Suzhou JoyIn Intelligent Technology, was founded in late 2024.

The start-up plans a phased approach to realizing humanoid robots for the home, Guo told CNBC in an interview earlier this year. The company is starting with companionship robots for elderly care and pet care, followed by robots for children’s education, he said.

Advertisement

Zeroth claimed it has received orders for more than 30,000 units, and that operating revenue in the first half of the year surged 600% from a year ago.

Guo said he plans to start overseas sales in North America and Europe this fall, once the company clears local compliance requirements.

The Ant Group-led deal comes as interest in humanoid robots grows in China. Nvidia on Monday announced it was hiring for several robotics roles based in Beijing, Shanghai and Shenzhen.

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Source link

Advertisement
Continue Reading

Crypto World

Bitcoin Reclaims $60K as Stronger US Dollar Undercuts Weekly Peak

Published

on

Crypto Breaking News

Bitcoin pushed higher at the Wall Street open on Wednesday, briefly trading up to the $60,000 area as broader risk sentiment improved and the US dollar eased.

TradingView data showed BTC/USD reaching $60,475 on Bitstamp, translating into nearly a 3% gain on the day. The move came after the pair’s June selloff had started July with a bounce from recent multiyear lows, while liquidations across crypto derivatives reportedly totaled more than $200 million over the prior 24 hours, according to CoinGlass.

Key takeaways

  • BTC climbed toward $60,500 at the start of the first US session of July, adding nearly 3% intraday.
  • Some of the tailwind appears linked to a cooling in US dollar strength, with DXY reversing off local highs.
  • CoinGlass data points to large 24-hour liquidation totals, highlighting how sensitive leverage remains.
  • Traders are framing July as a potential “relief” period, while still watching for a continuation of the broader downtrend later.
  • Market participants note crowded positioning in the US dollar, which could affect cross-asset flows if it unwinds.

Bitcoin’s early July bounce targets a key $60,000 level

The rally gained momentum during the early New York session, with BTC/USD spiking to $60,475 on Bitstamp, per TradingView. At the time of the move, daily gains were running close to 3%, suggesting dip-buying interest rather than a sustained breakout at that moment.

Derivatives flows reinforced that volatility was still in play. CoinGlass data cited in the coverage put 24-hour crypto long liquidations above $200 million at the time of writing—an indicator that leveraged longs had been forced out during the prior decline, clearing some room for upside rebounds.

Trader Lennaert Snyder described the move as a “lovely pump” and suggested that exhaustion on lower time frames could precede another push toward roughly $60,700, based on his intraday charting. Snyder’s comments, posted on X, pointed to a near-term sequence: a brief cooling after the initial surge, followed by an attempt higher.

Advertisement

Range traders watch whether $58,000–$61,000 holds

While the price action looked constructive, several traders focused on range behavior rather than immediately calling for a trend reversal.

Daan Crypto Trades highlighted the possibility that BTC could turn the $58,000 to $61,000 area into a temporary range. In an X post earlier in the session, he argued that if price revisited either end of that range, it could produce a “decisive break” and a larger directional move.

“I think there’s a good chance that the next attempt at the range high or low will cause a decisive break and bigger move.”

US dollar weakness and “crowded” positioning add context

Alongside crypto-specific signals, the broader macro backdrop appeared to matter. The US dollar index (DXY) reportedly reversed from local highs of 101.6 at the open, giving Bitcoin room to rise as dollar strength cooled.

Commentary from The Kobeissi Letter emphasized that the larger dollar trend could shift “soon.” In a post cited in the coverage, it warned that the “long US Dollar trade is crowded,” claiming speculative long positioning surged to +$34.3 billion as of June 23—its highest level in 18 months.

Advertisement

That matters for crypto because BTC often trades as a high-beta asset sensitive to dollar liquidity conditions. If crowded positioning unwinds or if expectations for dollar strength fade, it can influence risk assets quickly—sometimes amplifying moves once markets already have momentum.

Why traders are calling July a potential “relief rally”

Beyond the immediate bounce, market participants continued to discuss the possibility of a relief rally through July, even as they acknowledged that the path beyond mid-summer remains uncertain.

Trader Titan, referenced in the report, pointed to a base-case scenario tied to the monthly structure—specifically that a relief move in July could occur before the downtrend resumes. In his view, Bitcoin’s monthly performance would need to navigate the broader trend pressures rather than simply break away from them.

“My base case: a relief rally in July before the downtrend resumes.”

Rekt Capital also reiterated a historical pattern he associates with Bitcoin’s calendar behavior: “Red June. Green July. Red August.” In a post cited in the coverage, he suggested that while downside “wicking” could happen early in July—potentially dipping below the new Monthly Open—history implies the price may expand upward as the month progresses.

Advertisement

Still, this framing is not a blanket bullish call. The same analysis points to a likely two-step process: near-term volatility and potential testing of levels early in the month, followed by an upside stretch—followed by a watchful stance for bearish moves in August.

In other words, the rally appears to be treated by many traders as a tactical reprieve within a larger uncertainty band, rather than evidence that the broader trend has definitively reversed.

What to watch next

Bitcoin’s move above $60,000 is attracting attention because it interacts with both leverage dynamics and macro inputs like the dollar. Traders will likely focus on whether BTC can hold gains through key intraday levels and whether DXY continues to lose momentum; at the same time, many market participants are watching the early-July monthly structure for signs that the “relief rally” thesis is developing or failing.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

Advertisement

Source link

Continue Reading

Crypto World

UK Investors Sue Binance and Former CEO Changpeng Zhao for $200M

Published

on

1,700 UK investors have launched a group lawsuit in London’s High Court against Binance and founder Changpeng Zhao.

The claimants say the pair sold risky crypto derivatives products to retail investors without authorization.

UK Investors Demand $200M from Binance

The plaintiffs allege that between around late 2019 and 2020, Binance offered products such as leveraged tokens, options, contracts, and futures without the approval of the UK’s Financial Conduct Authority (FCA).

The victims filed the lawsuit under the Financial Services and Markets Act, claiming the derivatives are “specialized investments” under the rules. The UK regulator banned Binance from selling these complex investment products in 2021, but the exchange continued to sell them to its users, they say.

Advertisement

The crypto traders also accuse it of promoting the products through advertising campaigns, online materials, social media posts, and email communications.

Hannah Sharp, a partner at the law firm representing the victims, said its clients had suffered lots of financial losses and that it was determined to hold CZ and the exchange accountable.

The Financial Times reported that traders lost tens of thousands of dollars, and in some cases millions. The claimants are now seeking about $200 million in compensation.

Binance Acknowledges Lawsuit

Binance has yet to respond to the accusations in the lawsuit, but has acknowledged it’s aware of the proceedings.

Advertisement

“We do not comment on ongoing litigation. We will defend against these claims through the appropriate legal process in due course,” said the firm in a statement.

The case adds to a list of legal and regulatory challenges it has faced in recent years, including its recent failure to secure an EU crypto license.

Following the setback, Binance initially informed customers that it would stop offering services in the region. However, CZ later emphasized that it remains committed to Europe and plans to apply for a permit through another jurisdiction.

This was after the European Securities and Markets Authority (ESMA) ordered all unauthorized digital asset firms to wind down their operations by July 1 if they failed to obtain a MiCA license before the deadline. Meanwhile, crypto executives say that the directive is expected to affect more than 80% of crypto platforms in the region.

UK regulators have long been known for their cautious approach, warning users that crypto is a high-risk investment. The FCA also recently unveiled its long-awaited rules for the sector, which will see firms have to meet financial safety standards, comply with anti-money laundering and market abuse laws, and satisfy consumer protection requirements.

Advertisement

The post UK Investors Sue Binance and Former CEO Changpeng Zhao for $200M appeared first on CryptoPotato.

Source link

Continue Reading

Crypto World

Binance and Anchorage Digital Launch Off-Exchange Settlement for Institutional Traders

Published

on

Binance and Anchorage Digital Launch Off-Exchange Settlement for Institutional Traders


Binance and Anchorage Digital launched an off-exchange settlement integration, letting institutional traders access Binance's liquidity while keeping their assets in Anchorage's custody rather than on the exchange itself. The service runs on Atlas, Anchorage's settlement infrastructure suite. The… Read the full story at The Defiant

Source link

Continue Reading

Crypto World

SEC Opens 60-Day Comment Period on 'Novel' ETF Rules as Prediction Market Funds Pile Up

Published

on

SEC Opens 60-Day Comment Period on 'Novel' ETF Rules as Prediction Market Funds Pile Up


The Securities and Exchange Commission has opened a formal review of how it regulates "Novel ETFs," a category covering crypto-asset funds and products tied to prediction markets, publishing a request for comment as release 33-11426. The filing seeks comment on ways to facilitate innovation in the… Read the full story at The Defiant

Source link

Continue Reading

Crypto World

What is self-custody? Cold wallets versus exchanges

Published

on

What is self-custody? Cold wallets versus exchanges

Self-custody means holding your own keys instead of trusting an exchange to hold them for you. After FTX, Celsius, and Mt. Gox, the case is obvious. Yet most people still leave their crypto on a platform. Here is why, and how to change it.

Summary

  • Self-custody means you control the private keys to your crypto, so no exchange, company, or third party can freeze, lose, or spend your funds. The trade is that you carry full responsibility for keeping those keys safe.
  • The alternative is custodial storage, where an exchange holds your keys for you. It is convenient and offers support and recovery, but it exposes you to counterparty risk if the platform is hacked, goes insolvent, or freezes withdrawals.
  • The phrase “not your keys, not your coins” captures the core lesson from collapses like FTX, Celsius, and Mt. Gox, where users who left funds on a platform lost access when it failed.
  • Self-custody wallets come in two forms: hot wallets, which stay connected to the internet for convenience, and cold wallets, which keep keys offline for maximum security, usually on a hardware device.
  • Despite the risks, surveys show most users still keep crypto on exchanges, because self-custody means managing a seed phrase and accepting that a lost phrase or a phishing mistake can mean permanent loss.

Self-custody is one of the founding ideas of crypto and one of the least practiced. The promise of Bitcoin and the systems that followed was that you could hold value directly, without a bank or a broker standing between you and your money. Self-custody is that promise made real: you hold the keys, and no one else can touch your funds. The catch is that holding the keys means holding all the responsibility, and after years of exchange collapses that wiped out users who trusted platforms to hold their crypto, most people still do exactly that. This guide explains what self-custody is, how it differs from leaving crypto on an exchange, the difference between hot and cold wallets, how to set it up, and the real risks on both sides.

What self-custody means

To understand self-custody, you first have to understand what a crypto wallet actually holds. Your crypto does not sit inside your wallet the way cash sits in a leather one. The coins live on the blockchain, a public ledger copied across thousands of computers. What you truly own is the private key, a secret piece of data that authorizes moving those coins. Whoever controls the private key controls the crypto. A wallet is really just a tool for storing and using that key.

Advertisement

Self-custody, also called non-custodial storage, means you hold the private keys yourself. You alone can authorize transactions, and no company sits between you and your funds. Because no third party has your keys, no exchange bankruptcy, no regulatory seizure, and no corporate decision can freeze or take your crypto. You have complete control, and with it complete responsibility, since there is no help desk that can recover your funds if you lose your key.

The opposite arrangement is custodial storage, the default when you buy crypto on an exchange. There, the platform holds the private keys on your behalf. You see a balance in your account, and you can trade and withdraw, but the exchange controls the keys and therefore the crypto. You are trusting the company to safeguard your funds and to let you access them when you want. That trust is convenient, and it is also the entire source of the risk that self-custody is designed to remove.

Not your keys, not your coins

The phrase that has circulated in crypto for years is “not your keys, not your coins,” and it is the single most important idea in this whole subject. It means that if you do not control the private keys, you do not truly control the crypto, no matter what balance an app shows you. When your funds sit on an exchange, what you own is a claim against that company, not the coins themselves. As long as the company is solvent and honest, the claim is as good as the coins. When it is not, the difference becomes everything.

History has proven the point repeatedly. When large exchanges and lenders collapsed, users who had left their crypto on those platforms found they could not withdraw, and many never recovered their funds. The failures of Mt. Gox years ago, and of FTX, Celsius, and other platforms more recently, all delivered the same lesson: a balance on a platform is only as safe as the platform, and platforms fail. In each case, users who held their own keys were untouched, while those who trusted a custodian shared in its collapse.

Advertisement

This is the argument for self-custody in one sentence: it removes counterparty risk. There is no company that can go bankrupt with your coins, no platform that can freeze your account, no custodian that can be hacked and drained. The price of removing that risk is taking on the responsibility yourself, which is exactly where the difficulty, and the reason most people still avoid it, begins.

Hot wallets versus cold wallets

Within self-custody, wallets divide into two families based on whether they are connected to the internet. A hot wallet is a self-custody wallet that stays online, usually as a phone app or a browser extension. It is convenient: you can send, receive, and interact with on-chain applications quickly, which makes it well suited to small balances and daily use. The trade is exposure, because anything connected to the internet is more reachable by attackers, malware, and phishing.

A cold wallet keeps the private keys offline, most often on a dedicated hardware device that looks like a small USB stick. The keys are generated and stored on the device and never leave it; when you want to send crypto, the transaction is signed on the device itself, so the secret key is never exposed to your internet-connected computer or phone. This offline design makes cold wallets far more resistant to remote attacks, which is why they are the standard for larger amounts and long-term holding. The trade is convenience, since using one takes more steps and the physical device can be lost, damaged, or stolen.

Advertisement

It is worth separating two ideas that are often confused. Hot versus cold describes internet exposure. Custodial versus non-custodial describes who holds the keys. A hardware cold wallet is non-custodial and offline. An exchange account is custodial and online. You can have self-custody that is hot, such as a phone wallet, or self-custody that is cold, such as a hardware device. The safest arrangement for meaningful sums is self-custody that is also cold, because it combines your control of the keys with their isolation from the internet.

The seed phrase

At the center of nearly every self-custody wallet sits the seed phrase, and understanding it is non-negotiable. When you set up a wallet, it generates a sequence of 12 to 24 ordinary words, called the seed phrase or recovery phrase. Those words are a human-readable form of your master key. From them, the wallet derives all of its private keys, which means the seed phrase can restore your entire wallet on any compatible device if your phone breaks or your hardware wallet is lost.

That power cuts both ways. Anyone who obtains your seed phrase can recreate your wallet and take everything in it, from anywhere in the world, with no way to reverse the theft. And if you lose your seed phrase and lose access to your device, your funds are gone permanently, because no company holds a copy and no one can regenerate it for you. The seed phrase is the thing you are really protecting in self-custody, and the rules are strict: write it down and store it offline in a secure place, never type it into a website or share it with anyone, and never store it as a photo or in a cloud account where it could be leaked or hacked.

The seed phrase is also the reason self-custody feels intimidating, and it should command respect rather than fear. It replaces the bank’s password-reset and fraud-reversal safety nets with a single artifact that you alone are responsible for. Most catastrophic self-custody losses trace back to a seed phrase that was lost, exposed, or handed to a scammer, so mastering how to store it safely is most of the battle.

Advertisement

How to set up self-custody

The path is more approachable than it sounds. Start by deciding how much you are protecting and for how long. Small amounts you actively trade can live in a hot wallet or on a regulated exchange; larger amounts you intend to hold belong in cold storage. That decision drives which wallet you set up.

To set up a hot wallet, download a reputable wallet app or extension, triple-checking that you are on the official site to avoid the fake wallet apps that scammers publish. The wallet will generate your seed phrase; write it down on paper, store it securely offline, and never save a digital copy. To set up a cold wallet, buy a hardware device directly from the manufacturer or an authorized seller, never secondhand, then follow its setup to generate and record the seed phrase on the device. Once the wallet exists, you fund it by sending crypto to its receiving address.

A concrete example shows the flow. Suppose you hold Ether on an exchange and want to move it into self-custody. In your wallet, you find your receiving address for Ether and copy it. On the exchange, you choose to withdraw Ether, paste in your wallet’s address as the destination, confirm the network is correct, and review the fee before sending. After the network confirms the transaction, the Ether now sits in your self-custody wallet, controlled by your keys, and it will stay there untouched until you decide to move it. That single transfer is the moment custody changes hands, from the exchange to you.

The mixed approach

In practice, most experienced users do not choose between an exchange and self-custody; they use both, with a deliberate split. The common model is to keep the bulk of holdings in cold self-custody, isolated from the internet and from platform risk, while keeping a smaller working balance on an exchange or in a hot wallet for active trading and quick access. A frequently cited starting ratio is roughly 70% in cold storage and 30% on a platform or hot wallet, adjusted to how actively you trade.

Advertisement

The logic is that different funds have different jobs. Money you may need to move or trade at short notice benefits from the speed and liquidity of an exchange, and keeping only a small operational balance there limits how much is exposed if the platform fails. Money you intend to hold for the long term has no reason to sit exposed to counterparty risk, so it belongs in cold storage where your keys, offline, protect it. Splitting deliberately captures the convenience of a platform for the funds that need it while keeping the majority safe.

This is also the arrangement that shows up at the level of large holders and institutions, who typically hold reserves in cold storage, sometimes behind multiple required approvals, and keep only operational liquidity on exchanges. The broader on-chain trend of crypto leaving exchanges and moving into private wallets, often read as a sign of accumulation, is the same behavior at scale: participants moving coins they intend to keep off platforms and into custody they control.

Newer options and the responsibility trade

The seed phrase problem has driven a wave of newer wallet designs aimed at keeping self-custody while removing its sharpest edge. Multi-party computation, or MPC, wallets split the signing key into several encrypted shares held in different places, so there is no single seed phrase to lose or steal, and no one share can move funds alone. Some seedless wallets use this approach with familiar phone-based security like biometrics, letting beginners hold their own keys without memorizing or safeguarding a 24-word phrase. These designs aim to make self-custody accessible to people who found the seed phrase too risky to manage.

Even so, self-custody remains a trade-off instead of a free upgrade, and that is why most people still leave crypto on exchanges despite the risks. Surveys of crypto users capture the gap clearly: a large majority say self-custody is important and many fear a major exchange breach, yet most still keep their assets on centralized platforms and only a minority use a cold wallet. The reasons are convenience and fear of self-inflicted loss. An exchange offers password resets, customer support, and the comfort of not being solely responsible, while self-custody offers control at the cost of accepting that a lost phrase or a single phishing mistake has no undo.

Advertisement

The honest framing is that self-custody removes counterparty risk and replaces it with personal responsibility. Neither approach is strictly correct for everyone. A beginner with a small balance may reasonably start on a reputable exchange while learning, and a long-term holder with meaningful sums has a strong case for cold self-custody. The goal is to match the method to the amount, the time horizon, and your own comfort with responsibility, and to make that choice deliberately rather than by default.

The main risks to manage

Self-custody shifts the risks instead of removing them, so it helps to name what you are now guarding against. The first is seed phrase loss: misplace the phrase and lose your device, and the funds are unrecoverable, so secure, redundant, offline backups matter.

The second is exposure: a seed phrase photographed, stored in the cloud, or typed into a website can be stolen, so it must stay offline and private. The third is phishing and scams, the most common way self-custody users actually lose funds, where attackers trick you into entering your seed phrase on a fake site, signing a malicious transaction, or downloading a counterfeit wallet app.

The fourth risk is physical, since a hardware device can be lost, damaged, or stolen, which is why the seed phrase backup, stored separately from the device, is what actually protects you rather than the device itself. Practical defenses follow directly from these risks: store the seed phrase offline in more than one secure location, never share it or enter it anywhere online, verify every website and app through official channels, and treat any unexpected request for your phrase or an urgent prompt to sign something as an attack until proven otherwise.

Advertisement

The reassuring part is that these risks are manageable with discipline, and none of them involve trusting a company that could fail. The custodial user worries about the platform’s security, which they cannot see or control. The self-custody user worries about their own practices, which they can. For many people, trading a risk they cannot control for one they can is the entire appeal, and the reason the phrase “not your keys, not your coins” has outlasted every platform that tested it.

Frequently Asked Questions

What does self-custody mean in crypto?

Self-custody means you hold the private keys to your crypto yourself, so you alone can authorize transactions and no exchange or company can freeze, lose, or spend your funds. Your coins live on the blockchain, and the private key is what controls them. The trade is that you take on full responsibility for keeping those keys safe, with no help desk to recover them if lost.

What is the difference between a custodial and a non-custodial wallet?

A custodial wallet, such as an exchange account, has a third party hold your private keys for you. It is convenient and offers support and recovery, but it exposes you to counterparty risk if the platform fails. A non-custodial wallet, meaning self-custody, has you hold the keys, removing counterparty risk but making you solely responsible for security. The distinction is simply who controls the keys.

What does “not your keys, not your coins” mean?

It means that if you do not control the private keys, you do not truly control the crypto, regardless of what balance a platform shows you. Funds on an exchange are a claim against that company, not the coins themselves. If the company is hacked, goes bankrupt, or freezes withdrawals, that claim can fail, as users learned when platforms like FTX, Celsius, and Mt. Gox collapsed.

Advertisement

What is the difference between a hot wallet and a cold wallet?

A hot wallet is a self-custody wallet that stays connected to the internet, usually as a phone app or browser extension. It is convenient for small amounts and daily use but more exposed to online attacks. A cold wallet keeps the private keys offline, typically on a hardware device, signing transactions without exposing the key to the internet, which makes it far more secure for larger, long-term holdings.

What is a seed phrase and how should I protect it?

A seed phrase is a sequence of 12 to 24 words generated when you set up a wallet, and it is a human-readable master key that can restore your entire wallet on any compatible device. Anyone who obtains it can take your funds, and losing it can mean permanent loss. Write it down, store it offline in secure locations, never share it, and never save it online or as a photo.

Is self-custody safer than keeping crypto on an exchange?

It removes counterparty risk, the danger that a platform is hacked, goes insolvent, or freezes withdrawals, which is a real and repeatedly proven threat. But it adds personal responsibility, since a lost seed phrase or a phishing mistake has no undo. Self-custody is safer against platform failure and riskier against your own errors, so the right choice depends on the amount, your horizon, and your discipline.

Can I use both an exchange and self-custody?

Yes, and most experienced users do. The common approach keeps the bulk of holdings in cold self-custody, protected from platform risk, while keeping a smaller working balance on an exchange or hot wallet for trading and quick access. A frequently cited split is around 70% in cold storage and 30% on a platform, adjusted to how actively you trade. Different funds get matched to different needs.

Advertisement

What are MPC or seedless wallets?

Multi-party computation wallets split the signing key into several encrypted shares held separately, so there is no single seed phrase to lose or steal and no one share can move funds alone. Some seedless wallets use this with phone-based security like biometrics, letting users hold their own keys without safeguarding a 24-word phrase. They aim to keep the control of self-custody while reducing the seed phrase risk.

Disclaimer: This article is for information and educational purposes only and does not constitute financial, investment, or security advice. Self-custody carries the risk of permanent loss if keys or seed phrases are lost or stolen. Nothing here is a recommendation to use any specific product or service. Always do your own research and consider consulting a qualified professional before making decisions about storing digital assets. Information is accurate as of July 1, 2026, and may change.

Source link

Advertisement
Continue Reading

Trending

Copyright © 2025