Ledger Wallet Maker Plans Growth Amid Crypto Liquidity Troubles

08/02/2022

2 minutes read

2022.08.02 04:57

Crypto hardware wallet brand Ledger is on its way to raising at least another $100 million in funding, the anonymous source familiar with the matter told Bloomberg. When accomplished, the fundraising should lift Ledger’s value compared to the current $1.5 billion.

Ledger is one of the leading cryptocurrency hardware wallet manufacturers. The company has sold more than 5 million physical wallets by now and its gadgets host more than 20% of the world’s all crypto and digital assets.

The physical wallet allows crypto investors to store private keys by themselves and is believed to be immune to online threats like computer viruses, data thefts, or frozen crypto withdrawals.

Users Seek For to Secure Storage

According to an anonymous insider, Ledger is in talks to raise funding as its business continues to grow despite the harsh conditions in the cryptocurrency market.

The source admitted that the recent cases of bankruptcies and the large-scale liquidity crisis that spread across crypto exchanges led the growing number of investors to search for more secure crypto custody options.

Despite the worrying macroeconomic environment, the recent cryptocurrency credit crisis significantly affected the markets. Terra’s stablecoin depeg in May, staked ETH liquidity crisis, insolvency problems of crypto lender Celsius and hedge fund Three Arrows Capital (3AC) resulted in more than 50% drop of crypto market cap in few months.

The liquidity crisis triggered concerns across cryptocurrency trading platforms, like Zipmex, that led to sudden halts of crypto withdrawals and heightened the anxiety of the investors.

Launched the NFT Marketplace

Ledger has not yet confirmed or denied the recent fundraising rumors. However, if they turn out to be true, this would be the first Ledger’s capital increase since last June. The hardware wallet maker then completed a $380 million fundraising campaign and surpassed a $1.5 billion valuation.

Last week the company launched its Ledger Market for NFTs, aiming to be the most secure NFT mint and distribution platform on the planet. The NFT space has seen growing numbers of hacks and scams, with around $1 billion worth of assets stolen from 46,000 users via insecure NFT ownership since 2021, Ledger says.

On the Flipside

Back in 2020 Ledger suffered a large-scale data breach, when thousands of customers’ names, emails and home addresses have been leaked by hackers. The situation resulted in a legit-looking but fake Ledger wallet sending to unsuspecting users.

Why You Should Care

Ledger is one of the world’s biggest crypto hardware manufacturers, that currently secures 45 out of 100 top transactions on OpenSea and 40% of Bored Apes Yach Club NFTs.