89% still trust centralized custodians despite 2022’s collapses: Survey

Would You like a feature Interview?

 

All Interviews are 100% FREE of Charge

U.S. crypto users have not lost faith in the “intermediaries” that hold their cryptocurrencies. His January survey by Paxos suggests that the majority of U.S. cryptocurrency holders still rely on banks, exchanges and mobile payment apps to store their assets.

annual online investigation We sought to understand how the crypto winter and the “massive industrial impact” of 2022 (including FTX and Alameda Research) affected consumer behavior and trust in the crypto ecosystem. . Paxos said:

“2022 has been a rollercoaster year for the cryptocurrency industry.”

“From all-time high bitcoin prices to the lowest impact on large industries by companies like Terra, FTX and Alameda Research, 2018 has been a volatile year that could test the reliability of the ecosystem. It was one year,” he added.

However, the survey found that more than half (57%) of those who heard and followed FTX rumors plan to buy more crypto or simply do nothing as a result of the news.

We also found that 89% of respondents still trust “intermediaries” such as “banks, cryptocurrency exchanges and/or mobile payment apps” to hold their cryptocurrencies, with: said to

“Indeed, despite high-profile bankruptcies and underlying poor risk management practices seen in some cryptocurrency companies, cryptocurrency owners are unaware that intermediaries hold cryptocurrencies on their behalf. I still believe in doing that.”

The survey found that consumers want to be able to buy Bitcoin (BTC), Ether (ETH) and other digital assets from home or traditional banks, with 75% of respondents respondents say they are “highly or very likely” to buy It was the ‘major bank’ when offered, up 12 percentage points from the previous year.

Chart showing respondents who said they were more likely to buy cryptocurrencies from major banks.Source: Paxos

“Additionally, 45% of respondents reported that increased mainstream adoption by banks and other financial institutions would encourage them to increase their investment in cryptocurrencies,” Paxos added.

He said there is a “great untapped opportunity” for banks if they expand their offerings in digital assets. “These services not only meet the growing demand, but also lead to increased engagement,” he argues Paxos.

Related: Paxos has ‘constructive discussions’ with SEC: report

Respondents are eligible for the survey if they live in the United States, are at least 18 years old, have a gross household income greater than $50,000, and have purchased cryptocurrency within the last three years. The survey attracted 5,000 participants.

75% of respondents remain confident in the future of cryptocurrencies.Source: Paxos

“Consumers did not lose confidence in investing in cryptocurrencies despite the volatile cryptocurrency landscape in 2022. It underscores the long-term confidence of those who are doing it,” Paxos wrote.

However, the timing of the investigation suggests that the results gathered have been affected by recent events such as the bankruptcy of crypto lender Genesis, the crackdown on Binance USD (BUSD) involving Paxos, and the financial uncertainty of crypto bank Silvergate Capital. It means that we did not consider the headwinds of cryptocurrencies.