The trail of consequences for the FTX collapse is not yet over: investors are moving all their savings into hardware wallets, such as those of Ledger and Trezor.
Thus, the domino effect has begun, and the concern comes mainly from centralized exchanges, which are slowly losing credibility.
Why it is safer to move investments to crypto wallets Ledger and Trezor
Wallets that store private keys on internet-connected computers or smartphones leave users’ funds vulnerable to a wide range of attacks. Malware can detect crypto-related activity on these devices and drain users’ funds.
A hardware wallet is similar to an impenetrable vault with a small slot. When the user wants to create a transaction that the network will accept, they push it into this slot.
Even if someone manages to get their hands on your hardware wallet, you will have additional protection in the form of a PIN code. Often the devices will reset if an incorrect combination is entered a number of times.
Funds that are not actively used (those that are not spent, staked, loaned or used in trading) should be kept in cold storage. A hardware wallet offers a convenient means of achieving this level of secure storage, even for those with limited technical knowledge.
Hardware wallets must have a backup in case of loss, theft, or destruction. During initialization, the user is asked to write down the seed phrase (a series of words that can be used to retrieve funds).
This gives anyone the ability to spend the coins, so it should be treated as anything of value. It is recommended that users write the phrase on a note (or engrave it in metal) and keep it in a private and safe place.
Ledger: the most popular and best-selling wallet today
“After the FTX earthquake, there’s a massive outflow from exchanges to Ledger security and self sovereignty solutions.”
This is what Charles Guillemet, Chief Technology Officer of Ledger, has to say, displaying with confidence the benefit the company is reaping from the collapse of FTX.
Ledger is currently the largest provider of hardware wallets with its products, far outpacing its competitors. Its recent partnership with Binance has made it even more popular, and has skyrocketed the sales of Ledger’s branded crypto wallets.
Jean-Francois Rochet, Vice President of Transaction and Services at Ledger (TSL), states:
“Binance and Ledger are truly global leaders in the digital-asset space, and it only makes sense to combine to provide our users the benefits of buying crypto from Binance within Ledger Live, offering Ledger’s uncompromising world-class security.”
The Ledger company has demonstrated over the years, more precisely since 2014 when it was born, that it proposes and provides a leading product, which can definitely be called a top-of-the-line product. Right now we are really talking about one of the global leaders in the digital asset space, and the partnership with Binance, the world’s largest exchange, will take Ledger even higher.
Hardware wallet sales skyrocket: Trezor reports a 300% increase
One of the leading providers of hardware wallets, Trezor, has seen a growing increase in sales in recent days. Josef Tetek, brand ambassador of the crypto wallet provider company said recently that sales have skyrocketed following the FTX affair.
The company’s Trezor sales revenues have increased by 300% on a weekly basis, and the value is still growing. Sales are even higher than a few years ago, when Bitcoin reached its all-time highs. Not only have sales increased, but website traffic has exploded, as much as 350% over the same period.
Executive Josef Tetek expects more growth in the future, and the entire company is deeply convinced that the collapse of FTX of its former CEO Sam Bankman Fried is behind this increase:
“We expect this trend to continue in the short to mid term, as the contagion of FTX failure continues to unwind and Bitcoin or cryptocurrency holders lose trust in custodians and finally start to explore their options to self-custody their digital assets.”
Trezor’s executive ambassador was very clear on the whole issue of increased sales and what it will mean for the company. First of all, he clarified and specified that there will be no increase in wallet prices, despite the increase in demand, the supply price will remain the same.
He was very confident about his company, explaining that Trezor will be able to meet all kinds of demand:
“Even if sales continue at this elevated rate, we are confident there would be a limited impact on our stock in the longer term, as we were already planning for an uptick in sales.”
