Elon Musk Says Dogecoin Owners Must Break Free from Centralised Exchanges

Elon Musk in a one-word reply on Twitter expressed his views on custody of crypto assets like Dogecoin.

By Radhika Parashar | Updated: 25 November 2021 12:16 IST

Elon Musk Says Dogecoin Owners Must Break Free from Centralised Exchanges

Photo Credit: Facebook/ Elon Musk

Elon Musk publicly supports the crypto space and often gives suggestions on Twitter

Highlights

Elon Musk encouraged keeping crypto assets with oneself
He believes people must step away from centralized exchanges
Musk replied to a tweet by Bill Lee on this topic

Tesla CEO Elon Musk backed the idea of investors keeping custody of their crypto assets like Dogecoin, rather than relying on centralised exchanges like Binance and Robinhood. These exchanges simplify the selling and purchasing of cryptocurrencies but also hold custody of these assets — something that Musk does not seem to support. He expressed his opinion on Twitter, while replying to another post on this topic. Dogecoin was recently found to be the most searched cryptocurrency in the US.

Bill Lee, the founding partner at West Coast Holdings and an investor in Musk's companies had tweeted that unless the wallet keys are not in one's possession, they should not consider their crypto-holdings as their own.

In a one-word reply, Musk supported the notion and wrote, “Exactly”.

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Exactly
— Elon Musk (@elonmusk) November 24, 2021

While Musk did not elaborate on his viewpoint, it is not surprising that the Doge-supporter is backing for people to hold their own assets rather than letting them lay with centralised exchanges.

Scammers fishing for meaty targets often view centralised exchanges as target points. Hackers keep trying to breach the servers of these exchanges and steal the stored cryptocurrencies.

Elon Musk Reveals Reason Behind Supporting Dogecoin

Using a private crypto wallet, however, reduces the risks of being hacked or breached — while also allowing the investors to self-hold their assets.

With the crypto culture gathering steam around the world, nefarious scammers have been targeting investors from all sides.

Recently, for instance, Robinhood revealed that its servers were breached by an unauthorised third party earlier this month.

Earlier this week, Shiba Inu token's official Twitter account alerted investors that cybercriminals are replying on general SHIB-related posts and impersonating official accounts related to the meme-based dog coin to lure in unsuspecting people into their scam.

In October, a major hack attack has cost Ethereum-powered lending protocol called “Cream Finance” $130 million (roughly Rs. 972 crore) worth of crypto assets.

The total crypto crime in 2020 amounted to around $10.52 billion (roughly Rs. 79,194 crore), a report had revealed earlier in April.

The same report had also highlighted that scams and frauds that have plagued the crypto-space are a major problem that made for 67.8 percent of the total cryptocurrency crime in 2020.

Interested in cryptocurrency? We discuss all things 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 wherever you get your podcasts.

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Further reading: Elon Musk, Dogecoin, centralized exchanges, Binance, Robinhood

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More