Controversy Surrounds Uphold Vault as MuseForge Criticizes Fees and Self-Custody Claims
The launch of Uphold Vault, a self-custody solution for XRP investors, has stirred controversy as MuseForge, a prominent figure in the XRP community, issues scathing critiques. The primary point of contention revolves around Uphold’s decision to charge users fees for a self-custody service, with MuseForge asserting that the offering falls short of true self-custody.
Fee Structure and MuseForge’s Critique
Uphold imposes a fee of $4.99 per month or $49.99 annually for its self-custody solution, a move that has drawn criticism from MuseForge. The critic argues that Uphold’s vault service is not genuine self-custody, characterizing it as “a mockery to the intelligence of crypto holders.” MuseForge is particularly critical of Uphold’s practice of holding one of the three keys required for custody, dismissing it as insufficient for authentic self-custody.
https://twitter.com/MuseForge43/status/1734244569615573021
Advocacy for Alternatives
In response to Uphold’s fee-based self-custody model, MuseForge advocates for alternative options such as XUMM and self-custody on the XRP Ledger. While acknowledging the potential need for technical understanding in these alternatives, MuseForge emphasizes their superiority, stating that self-custody should be free, and entrusting wallet keys to a corporate entity poses risks for crypto holders.
MuseForge states, “There is no reason to give money to an exchange to custody your crypto. Use your head! Self-custody is free and should always be free. When a corporate entity holds any of your wallet keys, you are at risk!”
Counterarguments and Uphold’s Defense
A commenter in the debate suggests that Uphold’s insurance-backed custody justifies the fees, although acknowledging the classic adage, “Not your keys, not your crypto.” Uphold, in response to MuseForge’s criticisms, clarifies that it holds one of the three keys assigned to the Vault for specific reasons. Uphold explains that this arrangement facilitates user access restoration and key replacement in case of misplacement, reassuring users that the exchange does not gain access to their keys or assets during these processes.
Uphold emphasizes, “You remain in full control from beginning to end. If our systems were to go down, your assets would remain accessible at all times.”
Limited Access and Conclusion
It’s worth noting that the Uphold Vault is currently exclusive to XRP investors. As the controversy unfolds, the crypto community awaits further developments and discussions regarding the implications of Uphold’s fee-based self-custody model and MuseForge’s call for alternative, fee-free solutions within the XRP ecosystem
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