To store their cryptocurrencies on a physical wallet, many turn to Ledger. The French manufacturer, which has become a unicorn valued at $1.5 billion, has managed to set itself up as a reference on the product. So contrary to most market players, it could see its valuation increase considerably thanks to a new fundraising.
According to sources close to the company, interviewed by Bloomberg, Ledger is on the verge of closing a $100 million financing round. At the end of the day, fresh money not to deal with the gloom in the markets, but to continue to invest and go further. With its 300 employees in Paris, Vierzon and in several international cities, Ledger has forged 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 purchasing platform, but also a payment card in partnership with Baanx (United Kingdom ) which should arrive during the year. The 100 million dollars could also allow him to support his breakthrough with these new products and go and tickle players like Coinbase, Binance and FTX.
A competitive advantage for Ledger
If Ledger manages to prepare such a big fundraiser in 2022, it is thanks in particular to its physical wallet, capable of (really) securing customer cryptocurrencies. In the current context, confidence has never been so strong in physical wallets compared to the online wallets offered by exchanges.
With the drop in cryptocurrency prices, the number of transactions has dropped and many trading platforms are struggling to earn money. They had placed almost all of their reliance on this revenue stream (customer activity, adding transaction fees to them) so things got very complicated. The scandals surrounding Celsius and Voyager Digital have caused the trust of users of these platforms, who are likely to requisition customer funds in the event of a hard blow, to survive.
With a so-called “non-custodial” physical wallet, the owner is the only one with the private key to access funds. It’s different on a “custodial” digital wallet, where the private key is held by the platform, which therefore enjoys some control.
“A growing number of cryptocurrency investors are looking to store their holdings themselves instead of delegating this task to third parties, following recent liquidity issues at the Zipmex platform and the bankruptcies of broker Voyager Digital and lender Celsius Network. An increased desire for security is also helping to drive Ledger’s business, according to one of the interviewees.can we read in the Bloomberg article about a possible fundraising in preparation.
“Ledger takes advantage”commented on Twitter Grégory Raymond, the co-founder of the media specializing in cryptocurrencies and Web3 The Big Whale.