Investors are increasingly moving to hardware cryptocurrency wallets as concerns about centralized cryptocurrency exchanges grow in the wake of the FTX crisis.
Trezor, a leading hardware wallet provider, has seen a significant increase in wallet sales in the aftermath of the FTX epidemic, the company’s brand ambassador Josef Tetek told Cointelegraph on Nov. 15.
Tetek reports that Trezor sales have surged 300% week-over-week and are still growing. The platform has also recorded a significant surge in website traffic, with an executive saying he has grown 350% over the same period.
According to Tetek, Trezor believes the surge in new wallet users is the result of problems with FTX, the cryptocurrency exchange at the center of the latest industry scandal involving embezzlement of user funds. The surge in demand for the Trezor wallet started early last week, just as “fTX bankruptcy rumors started circulating.”
Trezor expects further growth of new users in the near future as the failure of cryptocurrency intermediaries continues to grow, Tetek suggested.
“This trend will continue in the short to medium term as the contagion of FTX failure continues to unwind and Bitcoin or cryptocurrency holders lose trust in custodians and eventually begin to explore options to self-manage their digital assets. It is expected to continue until
Cryptocurrency investors are increasingly moving to self-manage using software and hardware wallets, and by mid-November 2022, exchange outflows will approach record highs.
Ledger, a major rival hardware wallet supplier, has also recently recorded a significant surge in demand for its devices. The French cold wallet company hit a record traffic day shortly after FTX suspended all cryptocurrency withdrawals last week, prompting inventors to offload funds from exchanges to cold storage as soon as possible. became.
Related: CZ and Thaler Push for Crypto Self-Management Amid Growing Uncertainty
Amid the ongoing FTX epidemic, even some of the largest cryptocurrency exchanges have begun promoting the need for self-custody. Binance CEO Changpeng Zhao said on November 14 that centralized exchanges would no longer be needed as investors migrate to self-managed solutions such as hardware and software his wallet. I acknowledge that it is possible.
“If there was a way for people to store their assets safely and easily, and 99% of the general population could do it, then centralized exchanges wouldn’t exist, or probably should exist. will go away, which is great,” said the CEO.
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