Risk Current: I believe the majority of LN users have a fraction of their BTC on LN and they arent concerned about the custodial risk
Future: with BTC price appreciation + LN adoption = bigger portion on LN network which would be a much higher risk
-UX
Current: custodial wallets have much better UX so they attract more users as its quite challenging to have great UX for a non-custodial wallet (I know of breeze working on tackling that
Future: custodial & non custodial wallets will co-exist and they wil compete for UX & security, yield .... there will be rug pulls and other shaddy stuff ... but eventually we will get there
Current: I believe the majority of LN users have a fraction of their BTC on LN and they arent concerned about the custodial risk
Future: with BTC price appreciation + LN adoption = bigger portion on LN network which would be a much higher risk
-UX
Current: custodial wallets have much better UX so they attract more users as its quite challenging to have great UX for a non-custodial wallet (I know of breeze working on tackling that
Future: custodial & non custodial wallets will co-exist and they wil compete for UX & security, yield .... there will be rug pulls and other shaddy stuff ... but eventually we will get there