- MartyParty advises moving $SOL, $SUI, $XRP, $ADA, $ETH, and $BTC off centralized exchanges (CEXs).
- Claims offshore, unregulated CEXs are in “damage control mode” and prioritize their own reward tokens over users.
- Predicts L1 tokens will soon be tradable in-kind on regulated platforms without CEX involvement.
Crypto analyst MartyParty is telling investors to buy Layer-1 (L1) tokens—think $SOL, $SUI, $XRP, $ADA, $ETH, and $BTC—and stash them in self-custody wallets.
In a post on February 25, he issued a strong warning: get your assets off centralized exchanges (CEXs) and into personal wallets, ditching those offshore trading platforms.
He argued that CEXs are in “damage control mode,” looking out for their own reward systems and tokens, not retail investors. He claims exchanges are sucking liquidity from users, making them unreliable for keeping your crypto long-term. His message was simple: “Drain the exchanges and move the L1 assets to Self Custody and DeFi.”
Related: Martyparty Shares a Tweet When Bitcoin Pumped When China Spoke
The Case Against Centralized Crypto Exchanges
MartyParty’s take lines up with growing doubts about centralized platforms. Some experts have cautioned that market makers get token deals at a discount, dump them for profit, trigger liquidations, and crash prices—a cycle that messes up charts and traps regular investors. Once prices bottom out, these players buy back cheap, only to dump again after exchange listings pump up the token’s value.
This strategy lets them skip big listing fees, making it a legal but shady rinse-and-repeat game. He believes CEXs and market makers win, while retail investors always lose. He pointed out that DeFi’s liquidity is getting better, letting users trade L1 tokens on decentralized exchanges (DEXs) without CEXs in the middle.
Furthermore, he predicted that within “nine months”, legitimate and regulated platforms will allow in-kind L1 token trading, eliminating reliance on offshore CEXs. In his view, “CEXs are becoming obsolete” as stablecoin adoption grows, offering users the ability to transact and spend freely without intermediaries.
Is the Crypto Community Moving Towards Self-Custody?
While the push for self-custody isn’t new, MartyParty’s urgent call adds fuel to the fire. His warning, along with claims of having “on-chain evidence of predatory CEX practices,” could kick off a bigger move away from exchanges.
Related: Binance’s TST Listing Snafu: CZ Criticizes CEX Listing Procedure
As the crypto market matures, a shift to controlling your own crypto is bound to happen if CEXs keep up what he calls predatory actions.
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