Demand for hardware wallets grew after another cryptocurrency platform collapsed

Digital currency traders are starting to learn from the notoriously repeated mistake of holding funds on centralized cryptocurrency platforms. The collapse of the FTX exchange deprived 1.2 million of its clients of access to the deposited funds. Due to many similar situations, cryptocurrency market participants began to massively withdraw their digital assets from such platforms to external cryptographic addresses. For obvious reasons, companies producing hardware wallets have experienced increased demand for their products.

Trezor made money after FTX went bankrupt

The bankruptcy of the well-known cryptocurrency derivatives exchange, led by Sam Bankman-Fried, shook the entire cryptocurrency sector. As a result of this event, colossal damage occurred on the market, causing strong price drops in many of the most popular virtual currencies.

Although the collapse on the Bitcoin and leading altcoin markets has had a negative impact on many companies offering their services in this industry, some of them are benefiting from this situation. It is specifically about manufacturers of hardware wallets. For example, Trezor achieved a spectacular increase in sales by as much as 300% after the collapse of FTX.

The increased demand for hardware wallets among long-term investors is directly related to the ever-recurring fear of storing digital currencies on cryptocurrency exchanges and other centralized platforms. According to the well-known phrase "Not your private keys, not your Bitcoins", entrusting your assets to third parties has always been very risky.

Traders who have been market participants for a long time have certainly learned many valuable lessons related to the collapses of cryptocurrency exchanges. Customers of most of these platforms have still not recovered their funds after years.

In the case of Trezor, its current revenue from selling hardware wallets is higher than a year ago, when the oldest cryptocurrency reached its ATH of $ 68.7 thousand per coin. This Czech producer also experienced an increase in traffic to its website by as much as 350%.

Demand for hardware wallets will continue in the future

As trust in cryptocurrency brokers has diminished, Trezor believes the demand for its products will continue to grow in the future. The company's management recognized that the trend related to the FTX disaster may persist in the short and medium term. The team behind this company also added that they will be looking for and exploring options for self-managing cryptographic keys.

The Trezor team emphasized that they were prepared for a possible increase in sales after the FTX collapsed. Therefore, even if the demand for the products increases, it will not affect the availability of wallets in the long term.

In line with its vision, Trezor also does not plan to increase product prices so that the wallets are available to all participants of the cryptocurrency market.

Ledger also recorded a similar increase in interest in hardware wallets. After FTX suspended its payouts, the French company celebrated the best day in its history in terms of website traffic.

The fact that in the future centralized cryptocurrency platforms may cease to exist was recently mentioned by the CEO of Binance, which is the largest crypto asset exchange in terms of daily turnover. According to Changpeng Zhao, if people get the right and safe tools to easily manage digital currencies, they won't need intermediaries.