After Selling One Million Units in 2017, Ledger Attracts Investors In Samsung and Google
Ledger, the leading hardware manufacturer for hardware cryptocurrency wallets, has achieved a profit of $29 million during 2017. The president of the company, Pascal Gauthier, has recently told the media that the main reason why the company was so successful was that it was selling something that people needed.
According to him, the lack of secure platforms that could be used to sign transactions on the public blockchain have led to a huge demand for cryptocurrency hardware wallets and the company was the first major company to fill the demand in the market.
Gauthier believes that while the blockchain technology is fairly secure, signing on the blockchain is simply not as much. The system is flawed and if you lose your private key, you will simply never have access to your assets ever again, which means that people have gotten afraid of this and decided to buy hardware wallets.
Ledger Is Eyeing Another Multi-Million Dollar Funding Round Soon
During the beginning of 2018, Ledger has used its incredible numbers to led a fundraising of $75 million USD in investments. Investors like Tim Draper from the Draper Venture Network helped the company to achieve this incredible result in its Series B funding round, which was a huge increase over the series A round, which received over $7 million USD, less than 10% of the second one.
The Series B funding was mainly used to improve the infrastructure of the company and to create products targeted at retail traders and individual investors.
After divulging the results for the last year, Ledger is yet again eyeing some fundraising money and has already started to set another round this year. Some of the largest tech conglomerates in the whole world like Samsung, Google and Siemens’ venture arms have shown interest in Ledger, according to reports from the media.
According to Gauthier, the next funding round of the company will be aimed in getting money to deliver the products of the company in large scale for institutional investors whose entrance in the crypto market is imminent due to the debut of some programs like Coinbase Custody.
The company states that, for the current moment, large scale investors are still using third party services like Xapo or Coinbase to store their money. However, this can be considered a lack of security because they have to require massive operations from the vaults and have to trust them with their money.
Ledger CEO’s vision is that these companies will require means to hold their tokens without depending on third parties in the future and this is when companies like Ledger can provide the hardware to be the solution for them.
According to Gauthier, what you actually need is a Ledger Nano S-type solution for institutions: Ledger Vaults. These vaults could be used to securely store the money of these institutions and could be a way for the company to venture in this new market.
Demand For Hardware Wallets Is Still Increasing
After suffering hacking attacks during 2018, it has been clear that many exchanges are not as secure as they would like to be. Among the victims of the year are Coincheck, Bithumb and Coinrail. Large crypto companies from Japan and South Korea.
Coincheck’s attack, for instance, made the company lose over $500 million USD due to an error of the company in storing of its funds in NEM in a hot wallet that was attacked. Because of this, it is increasingly clear that solutions like the ones that are currently being offered by Ledger will be needed in the market if it still wants to be viable in the near future.