CZ Cites Data Suggesting Exchange-Held Coins Are Statistically Safer Than Self-Custody

Zhao Changpeng references Willy Woo data indicating exchange-held assets may be safer than self-custody due to better incident tracking and Binance's loss coverage.

Woofun AI reports that Changpeng Zhao referenced data from Willy Woo to indicate that, statistically, coins held on exchanges may be safer than those in self-custody. He noted that hacker incidents at centralized exchanges are easier to track because they typically generate major news, whereas losses from self-custody often go unreported. While some collapsed exchanges have negatively impacted overall statistics, platforms like Binance continue to cover users’ losses resulting from hacks on centralized exchanges. Different methods carry varying risk profiles and suit different audiences, suggesting a balanced approach may be the optimal solution.