Custodial identities are going to be a thing on Nostr as well. Let's make sure we let users know the difference.

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Thats ghey. Just get a password manager (bitwarden)

How are you envisioning that working?

Multiple people are developing online nsec bunkers where your keys are hosted at the server and the server controls who has the authority to post. That is custodial.

Sounds like a nice honey pot. Keys would pretty much have to be stored in plain text (or something close enough to it)

It is a honey pot. That's why they will exist. :)