In a Forbes interview, Ledger president Pascal Gauthier said that in general, the lack of a secure platform that allows users to sign transactions on a non-tamperable public blockchain has led to an increase in demand for Ledger and hardware wallets. Gauthier said.
The blockchain itself is secure, but signing on the blockchain is a flaw. If you lose your private key, no bank will take care of your assets and there is no way to recover assets.
Targeting another round of million dollar financing
In the early 2018, Ledger raised $75 million in Series B financing, led by early technology investor billionaire Tim Draper and Draper Venture Network funds. Compared with the previous $7 million Series A financing, the amount of Series B financing has increased significantly.
After achieving impressive financial results last year, Ledger began raising a new round of million dollar financing this year. The world’s largest technology giants such as Samsung, Siemens and Google’s venture capital department have seen Ledger’s earnings report, indicating that they are interested in investing in companies.
Ledger’s previous Series B financing was primarily used to improve infrastructure and develop products for retail traders and individual investors. Gauthier said that the company will focus on providing products to large institutional investors in the future, and their entry into the cryptocurrency industry is imminent, mainly due to the launch of Coinbase Custody hosting services.
Currently, most large institutional investors holding Bitcoin use Xapo and Coinbase’s insurance systems to store assets. However, for the insurance system to store a large amount of bitcoin, investors still need to trust the operators of the insurance system.
Ledger’s long-term vision is to allow the industry ecosystem to even allow large organizations to hold Bitcoin, Ethereum and other cryptocurrencies without relying on third-party service providers.
Gauthier explained, “You need to provide the agency with a Ledger Nano S solution, which is built for use by both large and small organizations.” He also stressed that customers are “lining” to buy Ledger Vault outside the French office of Ledger.
The growth in demand for hardware wallets is a positive signal
In 2018, the cryptocurrency industry has witnessed four major hacking attacks, including large incentivities in the Japanese and Korean encryption markets, including Coincheck, Bithumb, and Coinrail.
For example, Coincheck lost $500 million in hacking attacks, only because of a simple mistake: the company decided to store all the funds in a hot wallet in the form of NEM.
As a decentralized point-to-point financial network, the fundamental purpose of cryptocurrency is to allow anyone on the public blockchain to securely send and receive information in a trusted manner. The growing demand for hardware wallets such as Ledger Nano S and Ledger Vault proves that cryptocurrency investors and users are becoming more aware of the importance of security and de-hosting platforms.