Palmer argues that it is wrong to be excited that traditional financial companies are entering the crypto-money area. The creator of Dogecoin says the institutions will remove the crypto money from its ideological roots.
According to Palmer, they will overwhelm most of the industry’s efforts to tackle the center of indifference and will challenge directly.
Coinbase , a company that cites a trend in which organizations such as Coinbase have begun to be the actual gate guards, said Coinbase could suspend or erase user accounts with a decision, not just putting them in a power position, but also bringing about a vulnerability.
“Coinbase will lose access to a decentralized Bitcoin network if a user who is hacked or trusted by this provider if they go offline,” Palmer said.
Palmer also draws attention to the custodian companies that appear to hide users’ crypto coins. Coinbase, Bakkt and Fidelity all offer a kind of storage. Many don’t allow users to access their private keys, which means that service providers can arbitrarily keep funds.
“These companies want to centrally control and manage their purses while offering their custody services,” Palmer said.