How Ledger Benefitted from the Binance Hack

How Ledger Benefitted from the Binance Hack

The recent security breach on Binance had a knock-on effect for the whole ecosystem. Aside from prices, a lot of crypto investors were doing everything they could to increase their security as much as they could to keep their investments safe.

The CEO of Ledger, Pascal Gauthier has explained that after the news broke about Binance, the sales of the Ledger’s hardware wallets doubled:

“Binance got hacked, and the day Binance got hacked, our sales doubled.”

Secure Ledger

The French company is behind the manufacturing of hardware wallets. No one would have expected Ledger’s quick rise to the top as since it started, it has grown to have a significant market share and has become Trezor’s main competitor.

This information from Gauthier comes just a few days following the announcement of the Ledger Nano X Bluetooth hardware wallet, which is said to be an improvement on the Nano S model.

The CEO explained that even though cryptocurrencies have proven to be successful, there are still some flaws that prevent their global adoption with security being one of them:

“We at Ledger believe that there is not enough security to protect those cryptos … We think that it’s a great technology, there’s probably one weakness which is the [securing] of the endpoint and the private keys.”

It is worth noting that due to the growth of the ecosystem, there will companies upon companies flooding in who are willing to contribute to this type of tech. Just a few weeks ago, Ledger received an investment of just under $3 million from the phone giant, Samsung.

In fact, the new flagship smartphone from Samsung has got a built-in wallet. It seems that the mobile giant isn’t just focused on the functionality but the security of this feature too.

The CEO of Binance, CZ has made clear that the hack only had an impact on a minor part of the funds stored by the Exchange without actually risking users’ funds. Gauthier said that this kind of complication is a good example of the risks associated with nascent technology.

He also said:

“We believe the security needs to happen, and we are very excited about building the security layer for the industry.”

Published at Fri, 17 May 2019 10:20:16 +0000

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