Why are bitcoin safe on Relai?

Customers can buy BTC through the bitcoin app Relai. CEO and founding member Julian Liniger focuses his company on security and the Bitcoin-Only philosophy. The biggest difference to conventional exchanges such as Binance, Crypto.com or Coinbase: Users keep their private keys themselves. Relai lives the Bitcoin narrative: “Not your keys, not your coins”.

In the conversation we wanted to know how Julian Lininger got into Bitcoin, why customer funds are safe on the BTC app and whether Relai is affected by the FTX collapse. You can find the full interview on the BTC-ECHO Experts Podcast.

BTC-ECHO: How was your personal path into the Bitcoin sector?

Julian Lininger: In 2015 I came into contact with Bitcoin for the first time. A good childhood friend of mine who was in tech and studied computer science, […] showed me bitcoin and other cryptocurrencies. He said to me: “This is super cool, online, and can be traded 24/7. The price goes up and down and you don’t need a bank for it.” I found it super exciting and then bought my first bitcoin through him – at that time for 500 euros. And when the price went up straight away, I sold it again. That was very naïve at the time and I haven’t seen the big picture yet.

I have the long-term value that this [Bitcoin] haven’t seen it yet, but I got into it little by little. I did a lot of research and experimented myself, and when this hype atmosphere arose in early 2017, it really grabbed me. Only then did I understand the long-term implications of Bitcoin and other cryptocurrencies at the time. Since 2018, 2019 I got into the topic full-time professionally because it was the best mix of finance, technology and the future for me.

At the centrally controlled crypto exchange FTX, customer funds were used and embezzled. Why can’t that happen with Relai?

Basically, customers don’t have to trust us at all. In the wake of the FTX debacle, we have several flamboyant posts made after our Proof of Reserves would be zero. We don’t hold money from customers. This means that no matter what happens to us, customers actually have no risk. Everyone bears the risk and responsibility by holding the bitcoins themselves. These 12 words, the seed phrase, you have to write down and keep – it’s super important. But you have control and are not dependent on a third party.

The FTX collapse probably came as a shock to you as it did to everyone else. Was Relai or your assets negatively affected in any way?

Yes, it was a huge shock – for me too. But I never would have thought it possible that it would really collapse like that. The effects of this collapse are enormous and affect not only hedge funds but also the companies that have invested in FTX. Fortunately, Relai is not involved. Although we were once onboarded with FTX, we never had money on it or traded it. Luckily that didn’t happen anymore.

Here you can find out why setting up a savings plan can make sense for both your mind and your wallet.