Jameson Lopp dropped some spicy truth that handing Bitcoin to any third party never magically fixes your losses no matter what kinda scenario pops up. 😈 This sparked a whole messy debate with analyst Willy Woo and random X users on whether pros holding your keys are actually safer than you managing your own.
A Custody Spat Unfolds on X 💀
Lopp fired back in a post straight at the vibe that an ETF just wipes away all BTC worry fr. “There is objectively NO type of loss that can be solved by giving your bitcoin to a third party,” he wrote. “Third party custody is exposed to every self custody risk PLUS MORE!” 👀
Dima agreed custodians add that extra counterparty risk on top but pushed that most folks get wrecked by their own slip ups like lost seeds or phished wallets anyway. Some ETFs even got bankruptcy remote setups now keeping your stuff separate which is way better than old exchange days. Lopp clapped back saying most people totally could self custody if they stopped being lazy and put in the work. Segregation means nothing if the base asset vanishes tho. He pointed to his own Casa crew helping older clients who don’t wanna deal with it themselves.
Woo hit with the numbers next: 1.57 million BTC gone via self custody, 1.51 million on exchanges and zero from spot ETF custodians per that River report. He said modern pros beat “moms and pops at home” any day. Lopp replied ETFs are too new to have crashed yet and most pile into the same custodian anyway. He asked if spreading risk over millions of noobs beats concentrating it with one expert.
Woo noted Coinbase Custody hasn’t lost a single coin in over eight years while self custody dropped 136,000 BTC and exchanges lost 13,000 in that span. He called it no real choice since both options hang on one party nailing the job but pros dodge physical threats like wrench attacks way better. 🔥
Coinbase Track Record Gets Questioned 🌑
Lopp fired again saying the zero loss flex “seems to be in dispute” and pointed straight at Ari Paul dragging Coinbase for supposedly losing 25 million belonging to BlockTower years back plus covering up hacks that hit over a billion across firms. Those claims are still unproven with legal stuff ongoing but Coinbase did reach out to check it. 🔗💸
Just another echo from the void by iconofsin.eth 💖
