Plus, people have said that trading on an exchange may stop until people transfer their Bitcoins back to it. This issue could cause hassles for the people who want to trade and are not part of the group that took their Bitcoins off the exchange.
Given the amount of competition among token protocols, most tokens will likely be a bad investment due to the difficulties of identifying a ‘winner’ and the fact that market dynamics essentially places a hard cap on the token if it has no store of value characteristics. These same forces are also why payments functionality in a store of value asset is relatively trivial compared to the assets ability to be resilient to changes. It is interesting to note that, of the potential use cases for cryptos, store of value functionality comes with the least technological risk. Bitcoin (BTC), the most likely candidate for this pure store of value asset, has consistently prioritized resiliency and is already at a stage where it has been tested in the real world.