To store their cryptocurrencies on a physical wallet, many turn to Ledger. The French manufacturer, which has become a unicorn worth 1.5 billion dollars, has managed to establish itself as a reference on the product. So, unlike most market players, he could see his valuation rise considerably thanks to a new fundraiser.
According to sources close to the company, interviewed by Bloomberg, Ledger is on the verge of closing a $ 100 million round of funding. At the end of the day, new money not to face the gloom of the markets, but to continue investing and go further. With its 300 employees in Paris, Vierzon and several international cities, Ledger has created a strong source of revenue, with 3 million crypto wallets sold since its inception in 2014.
The business model of the French nugget has evolved over the past two years with the arrival of a cryptocurrency exchange platform, an NFT buying platform, but also a payment card in partnership with Baanx (UK) which is expected to arrive. during the year. The $ 100 million could also allow him to support his breakthrough with these new products and go to tickle players like Coinbase, Binance and FTX.
A competitive advantage for Ledger
If Ledger is able to prepare such a large fundraiser in 2022, it is thanks in particular to his physical wallet, able to (truly) protect customers’ cryptocurrencies. In the current environment, confidence has never been stronger in physical wallets than online wallets offered by exchanges.
With cryptocurrency prices falling, the number of transactions has decreased and many trading platforms are struggling to make money. They had put away almost all of their addiction to this revenue stream (customer activity, added transaction fees), so things got complicated. The scandals surrounding Celsius and Voyager Digital have meant that the trust of users of these platforms, who risk committing customer funds in the event of a major blow, survives.
With a so-called “non-custodial” physical wallet, the owner is the only one with the private key to access the funds. It is different on a “custodial” digital wallet, where the private key is held by the platform, which therefore enjoys a certain control.
“An increasing number of cryptocurrency investors are looking to stock their holdings instead of outsourcing this task to third parties, following the recent liquidity problems on the Zipmex platform and the failures of the Voyager Digital broker and lender Celsius Network. A heightened desire for security is also helping to drive Ledger’s business, according to one respondent.we can read in the Bloomberg article about a possible fundraiser in preparation.
“The ledger takes advantage of it”commented on Twitter Grégory Raymond, the co-founder of the media specialized in cryptocurrencies and Web3 The great whale.