Self custody can be improved in different ways. With better UX, users won't even know if they are using a self custodial wallet.
@Rob Hamilton 's trident vault is an example of innovating self custody with insurance and better security.
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And when they do a address-typo or lose access to the app... who they gonna call?
They don't need to type the address and can recover even without app if developers focus on UX, security etc.