Adam Back, a prominent Bitcoin advocate, has warned that the industry is repeating the same custody mistakes that doomed FTX. He points out that many traders still rely on exchanges or custodial services that can be vulnerable to mismanagement or hacking. In his view, the only reliable way to safeguard Bitcoin is to keep it in a personal wallet and hold it long‑term (HODL).
The market is currently in a state of “Extreme Fear,” with the fear‑greed index at 24. Bitcoin’s price is hovering around $64,300, up just over 1 % in the last 24 hours, while Ethereum is similarly modestly higher. In such a climate, the temptation to entrust funds to large custodians is high, but the risk remains. Back’s message is a reminder that self‑custody eliminates the single point of failure that plagued FTX.
Retail investors should watch how institutional custody providers respond to the recent ETF outflows—Blackrock’s IBIT saw a $773 million weekly exit as Bitcoin ETFs lost $527 million. If custodial firms tighten controls or offer new security guarantees, the industry may shift. Until then, the safest path for most holders remains keeping their Bitcoin in a private wallet and avoiding the pitfalls that caused FTX’s downfall.