Erik Voorhees’ new ShapeShift platform takes a jab at Coinbase by providing self-custody services

  • 09 July 2019, Tuesday, 10:00

Erik Voorhees, CEO of ShapeShift, spoke about a new feature for its users with Naomi Brockwell, and how it should be a standard for cryptocurrency platforms in the present day.

Voorhees, a Bitcoin enthusiast, founded ShapeShift back in 2014. He announced the new feature – a self-custodial platform for its users. Voorhees said,

“The new platform is a way to send and receive, to store safely, to move in and out of fiat and to trade and track cryptos and manage your entire crypto portfolio, all without trusting a third party it’s optimized to be one that protects them from a custodial perspective.”

While the nascent technology, blockchain and its product, cryptocurrency, all need to evolve, there are multiple services that offer the same features as ShapeShift, but with different platforms. Voorhees acknowledging this, adding that Coinbase was the only company that allows the same service. However, the problem was that they are “custodial,” he said.

He added,

“I think of them as a really good bridge into the crypto world but every major crypto company is a custodian then we really haven’t had a proper bridge to anything, we are back to the old model. I wanted to build a holistic platform that people would use instead of Coinbase, that was at least as easy as that, at least as good of a UX as that, but without having to trust any third party.”

There are quite a few people in the crypto-industry who are advocating people to hold their own keys, instead of allowing exchanges or other third parties to keep them, parties which are way more susceptible to hacks. Trace Mayer’s movement – Proof of Keys, brought forward the necessary education to the masses that were in the space or were trying to get in.