Ledger, which is the leading hardware crypto wallet manufacturer and developer, sold more than 1 million hardware wallets last year, recording a profit of about $29 million.
In one interview with Forbes, the president of Ledger, named Pascal Gauthier stated that the lack of secure platforms that users can use to sign the transaction on the immutable public blockchain led the demand for Ledger, as well as hardware wallets in general, to rise.
The president said that blockchain itself is secure, but signing on the blockchain is a flaw. If you lose the private key, there will not be bank looking after your assets or any way to recover them.
Eyeing another multi-million dollar funding round.
Earlier this year, the manufacturer it raised $75 million led by billionaire early state technology investor Tim Draper and Draper Venture Network funds. The Series B funding round of Ledger was a substantial boost from its previous Series A funding round that closed a $7 million investment.
After it had recorded a profit in 2017 with its impressive financial results, Ledger also set to raise yet another multi-million dollar funding round in 2018. Some of the most significant technology conglomerates in the world like Samsung, Siemens and the ventures arm of Google, already have viewed the financials of Ledger, with interest of investing in the company.
The previous Series B funding round of it was mainly used for the improvement of the infrastructure of Ledger, as well as for creating products targeted at retail traders and individual investors. Gauthier said that in the future, the company is going to focus on delivering outcomes for large-scale institutional investors, whose entrance into the cryptocurrency sector will be considered to be imminent primarily due to the debut of Coinbase Custody.
The use of vault systems of Xapo and Coinbase.
At the moment, the majority of large-scale investors that hold bitcoin, use vault systems of Xapo and Coinbase to store their funds. However, the requirement of vaults to maintain massive amounts of Bitcoin still requires investors to trust the operators of the vault.
In the long-term, the vision of Ledger is to enable an ecosystem which is going to permit an even large institution to hold cryptocurrencies such as Bitcoin, Ether, as well as tokens without relying on third-party service providers.
Emphasizing that the clients are “queueing” outside the office of Ledger in France to purchase Ledger Vault, Gauthier explained that institutions will need Ledger Nano S solution, which are products that are made for big and small financial institutions.
Increasing the demand for hardware wallets positively.
This year, the cryptocurrency sector saw four major hacking attacks, which were suffered by Coincheck, Bithumb, and Coinrail, which are large crypto exchanges in the Japanese, as well as the South Korean crypto market.
For example, Coincheck experienced a $500 million hacking attack, because of one simple error in the decision making of the company to store all of its funds in NEM in a hot wallet.
The fundamental aim of cryptocurrencies as decentralized peer-to-peer financial networks is to enable anyone on a public blockchain to send, as well as to receive information security, in a trustless manner. The rising demand from hardware wallets, such as the Ledger Nano S and Ledger Vault had demonstrated an increasing awareness of cryptocurrency investors, as well as users on the significance of security and non-custodial platforms.