According to a CoinGecko poll looking at crypto storage behavior after the FTX collapse, eight out of ten cryptocurrency investors keep their digital assets on hot wallets.
According to the study results, three out of ten respondents claimed they utilized cold wallets, while seven out of ten respondents indicated they maintained their assets on centralized exchanges.
421 individual investors participated in the research, which took place between December 2022 and January. It was not made clear in the article if participants employed different methods of storage.
Self-custody hot wallets' popularity reflects how the community feels following the FTX crash. The popularity of wallets connected to centralized exchanges is still very strong, though.
The paper argues that this rate is justified by the fact that centralized exchanges now outnumber decentralized ones. The study claims:
“Most crypto holders remain reliant on centralized exchanges for on- and off-ramping as well as for buying and selling crypto, such that holders prioritize convenience over security.”
According to the analysis, the percentage of respondents who favored cold storage for their cryptocurrency was insufficient to indicate a shift in the general attitude of the community.
According to a November 2022 study by CryptoSlate, the FTX meltdown caused reserves of Bitcoin to move into self-custody wallets. Over 15 million BTC were kept in self-custody wallets in November 2022, making approximately 78% of the total quantity that was in circulation at the time.
Cryptocurrency organizations turned to self-custody services as a result of the FTX crash. Robinhood, a cryptocurrency exchange platform, began developing its own self-custody wallet in December 2022 and released it in January.
Meanwhile, in January, the cryptocurrency company Juno recommended its consumers to sell their crypto assets or switch to self-custody. The business posted on its official Twitter account:
“We strongly recommend withdrawing crypto assets to your self-custody wallet or selling your crypto for cash in your Juno checking account.”
The use of cold storage rose along with the trend toward self-custody. According to data from December 2022, 450,000 BTC that were in hot wallets or on exchanges were transferred to cold storage during the course of the year.