Ledger claims that sales increased 4.5x after the Celsius bankruptcy. Trezor, SafePal and SafePal also reported impressive sales figures. This summer, there have been many crypto-related deaths.
Aug 8th, Singapore’s Hodlnaut joined other lenders Vauld, Celsius, and Singaporean exchange Zipmex to suspend user crypto withdrawals due to “recent market conditions.”
This was done to “stabilize liquidity,” an expression also used in Celsius’s withdrawal freeze announcement.
Investors were shocked to learn that their digital assets had been effectively taken while the firms worked out a recovery plan. Many people have been affected by the various degrees of severity, and it is often painful to read.
The recent liquidity crisis left many industry professionals in a bind. New evidence shows that many people are now taking these words to heart.
While many crypto companies are insolvent or are receiving bailouts, Coinbase, Gemini and blockchain.com all have announced mass layoffs. Solana, Nomad, and Solana are still reeling from yet another multimillion-dollar attack. However, one subsector of the economy is flourishing: hardware wallets.
Hardware wallets have been lauded as the best option for crypto storage over the long-term.
Users’ private keys are kept safe and secure offline. They are generally immune to online attacks unlike software wallets. However, they have been the targets of phishing attacks. The most recent was this year when a Mailchimp newsletter database containing emails from Trezor users , was compromised.
They are not invulnerable but they can offer a better alternative to their software counterparts if you are careful and hawk-eyed.
The top models by Trezor or Ledger are also resistant to physical manipulation, making them an excellent choice for long-term digital asset storage.
According to Solana’s developers, an exploit in Slope mobile wallet apps led to Solana users having their private keys “inadvertently transmitted to a third party.” The attacker took $4.5 million in and USDC.
Changpeng Zhao, Binance CEO, later tweeted that anyone who was concerned could send funds to a hardware wallet.
Hardware wallet sales have risen amid the hacker wave, which has seen a spike in freezes and insolvencies.
Philip Costigan is a senior account manager for Ledger. He says that security was something everyone will eventually think about. The company revealed that it has sold more than 5 million units at the Ledger Op3n conference. Costigan states that there have been “recent problems with lenders, bridge hacks and the Solana wallet exploits.” “have only increased sales and demand.”
He stated to Decrypt, that Ledger sales rose “4.5x” following Celsius’s bankruptcy.
Decrypt asked representatives from Trezor and Ledger to inquire if there had been an increase in sales for the Shenzhen-based hardware wallet manufacturer SafePal. All three replied positively.
SafePal responded that it had experienced “substantial growth” in product and asset management, and attributed it to the “collapse of central financial institutions and the liquidity crises affecting crypto industry.”
SafePal did not provide any sales information. However, CEO Veronica Wong stated that her company believes that “the growth will continue” because crypto continues to gain traction with newcomers.
Trezor representatives confirmed that Trezor has experienced an “increased interest” in self-custody solutions in the last few months. However, the bear market is still having an impact.
According to the company, crypto users are now “waking up to how they can lose access to their assets at anytime,” and “We believe that this is a positive development that should ensure that user loss are not as widespread as in the recent spate of bankruptcies.”
Costigan echoed this sentiment and told Decrypt, “This almost had to happen in order for people to understand how important security for storing people’s assets.”
Ledger’s hardware wallet sales had more than tripled on the Solana exploits. Ledger also announced the ” MOSOL2LEDGER” discount code. This code ran until August 7, and offered new customers 10% off the Nano X or the Nano S Plus models.
Ledger said that there was a greater increase in interest after the announcement, and that both models were “seeking a similar level of interest.”
It’s disappointing for many people to lose out but it was inevitable. Costigan said that people now realize why security is so important and that they are seeing it in sales.
Experts agree that there have been some unfortunate and necessary sacrifices, but the spotlight is shifting away from meme coins and yield farming. Crypto security now takes center stage.