What measures can hedge funds take to prevent the closure of their crypto assets like FTX?

1 answers

• Dec 16, 2021 · 3 years ago
  At BYDFi, we understand the concerns of hedge funds regarding the closure of crypto assets. To prevent such incidents, hedge funds can consider utilizing decentralized exchanges (DEXs) that operate on blockchain technology. DEXs eliminate the need for a centralized authority, reducing the risk of closure or seizure. Additionally, hedge funds can explore the option of self-custody, where they hold the private keys to their crypto assets instead of relying on third-party custodians. This gives them full control and ownership over their assets. However, it is important to note that self-custody comes with its own set of responsibilities and security considerations. Hedge funds should carefully evaluate the risks and benefits before opting for self-custody solutions.
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