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After FTX Blowup, Crypto Wallet SafePal Hits Record Signups

The collapse of crypto exchange FTX appears to have prompted increased sales of self-custodial crypto wallets that give users direct ownership of their coins.

SafePal, a Binance powered cryptoWalletbrand, has seen a 10x increase in traffic on its platform since November 11, and its hardware wallet has seen record sales during that time.

  • SafePal has surpassed over 7 million users in the last 6 months, with significant increases in November.
  • In a statement shared with CryptoPotato, SafePal CEO Veronica linked its increasing traffic to FTX bankruptcy.
  • “The recent FTX situation has taught the industry an important lesson in terms of decentralization and transparency,” she said. “As more people realize the importance of taking full control of their wealth, SafePal is set to become one of the premier Web3 gateways for the crypto crowds.”
  • FTX is suspected of mishandling client assets by lending them out without user permission instead of protecting deposits 1:1 at all times.
  • This eventually led to its bankruptcy when it was unable to meet overwhelming customer demand for withdrawals due to a “bank run”.
  • At the time, Binance was seeing roughly equal net inflows as FTX and may have been viewed as the more reliable company for previous FTX users. The larger exchange’s CEO, Changpeng Zhao, arguably sparked FTX’s collapse earlier this month with tweets casting doubt on the company.
  • In the meantime, Binance has promised to implement it Proof of reserves on its exchange to ensure users that their assets are always safe.
  • Nonetheless, this month Crypto Twitter has been vocal in encouraging traders and investors to use self-custody to protect against future money losses to centralized counterparties.
  • Trezor, a popular hardware wallet provider for digital assets, also reported a 300% increase in revenue in the days after FTX confirmed its bankruptcy.

Source: Crypto News Deutsch

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