Crypto hardware wallet brand Ledger is on its way to raising an additional $100 million in funding, an anonymous source familiar with the matter told Bloomberg. Following its resolution, the fundraiser is expected to see Ledger surprass its current valuation of $1.5 billion.
Ledger is one of the leading cryptocurrency hardware wallet manufacturers. The company has sold more than 5 million physical wallets to date, and its gadgets host more than 20% of the world’s crypto and digital assets.
The physical wallet allows crypto investors to personally store private keys, and is believed to be immune to online threats such as computer viruses, data theft, and frozen crypto withdrawals.
Users Seek Secure Storage
According to an anonymous insider, Ledger is in talks to raise additional capital as its business continues to experience growth despite the harsh conditions seen throughout the cryptocurrency market.
The source underlind that the recent cases of bankruptcy and the large-scale liquidity crises permeating the crypto exchange market has caused a growing number of investors to search for more secure crypto custody options.
Despite concerns around the current macroeconomic environment, the recent cryptocurrency credit crisis has had a significant impact on the markets. Terra’s stablecoin losing its peg in May, the staked ETH liquidity crisis that followed, and the insolvency issues of crypto lender Celsius and hedge fund Three Arrows Capital (3AC) culminated in 50% of the total cryptocurrency market cap being wiped over a period of mere months.
The liquidity crisis triggered concerns across cryptocurrency trading platforms, such as in the case of Zipmex, leading to sudden halts in crypto withdrawal services and heightened anxiety among investors.
NFT Marketplace Launched
Ledger has yet to comment on the recent rumors of a fundraiser. However, in the event they turn out to be true, it would mark Ledger’s first capital increase since June 2021, when the hardware wallet developer completed a $380 million campaign, surpassing a $1.5 billion valuation in the process.
Last week the company launched the ‘Ledger Market’ for NFTs, which was developed with the aim of being the most secure NFT minting and distribution platform on the planet. The NFT space has seen a rising number of hacks and scams, with around $1 billion worth of assets reportedly stolen from 46,000 users since 2021 due to insecure NFT ownership, Ledger says.
On the Flipside
- Back in 2020 Ledger suffered a large-scale data breach, which resulted in the names, emails, and home addresses of thousands of customers leaked by hackers. The situation was brought about by the dissemination of a fake Ledger wallet, which seemed legit at first glance, among unsuspecting users.
Why You Should Care
Ledger is one of the world’s biggest crypto hardware manufacturers, that currently securely holds 45 out of 100 top transaction assets made on OpenSea, and 40% of all Bored Ape Yacht Club NFTs.
Read more about the Terra Luna Crash:
Down to Zero: Terra Luna Crash and Its Impact on Crypto Adoption
Find out more about the Ledger data breach:
Million Emails Compromised After Ledger Wallet Database Breach