> But the problem is more fundamental than losing a bit of money. Crypto was built on the idea that you shouldn’t have to trust banks with your money, that people should be able to hold it themselves, hopefully somewhere a little more secure than a mattress.

Yes, and some of these tokens, like BTC, allow this since "crypto was built". You can clone and build https://github.com/bitcoin/bitcoin and set up your own wallet. Noone will touch coins in it if you're careful. They can lose their value but they will still be there.

If you trust someone else to hold your wallet, which is more or less a necessity when you trade/exchange your coins, that's whole other ball game. But having all your money in bunch of wallets kept by a single entity that is not you, is just plain stupidity.