The CEO of Tesla starred in a spirited tweet exchange with Binance CEO Changpeng Zhao and ended up firing off a message that could be interpreted as encouraging people to abandon cryptocurrency platforms or exchanges.
Bill Lee, the founding partner at West Coast Holdings and an investor in Musk’s companies, answered a statement made on Twitter regarding the need to “break the dependency” on cryptocurrency exchange platforms. He added: “not your keys, not your crypto,” to which Elon Musk responded with just one word: “Exactly.”
In blockchain, public and private keys are the necessary components for users to manage their cryptocurrencies. These are hosted in the virtual wallets of the virtual wallets’ owners. However, this scenario does not apply in case of using some exchange platforms.
When users buy crypto through platforms such as Binance or Robinhood, they do not have possession of the keys or have a virtual wallet with the keys. The storage and protection of the keys are left in the hands of these platforms in exchange for a friendly operating environment.
Elon Musk knows the effect of his tweets and he could, with a simple message, make many abandon these platforms, which have millions of users, and turn to alternatives.
As mentioned before, this week Elon Musk and Changpeng Zhao had friction on Twitter. The Southafrican said on Tuesday “Hey @cz_binance, what’s going on with your Doge customers? Sounds shady.”
This prompted the exchange CEO to respond on social media: “Hey @elonmusk – no, not shady – just frustrating and we’re working on it – details here”, followed by a thread. They were referring to the situation that, according to Binance, resulted in failed withdrawal transactions, suspension of withdrawals for between 10 and 14 days, and a request for some users to return assets.
Elon Musk did not hesitate to express his displeasure and replied: “Doge holders using Binance should be protected from errors that are not their fault,” Musk replied. To this, Changpeng Zhao responded with a link to a news item about a software glitch that forced a recall of 12,000 Tesla cars and asked “What happened here?”
In an interview in June, Zhao had said that Musk should be more careful about his tweets on cryptocurrencies, but the richest person in history continues to revolutionize the crypto community with his Twitter account.