As crypto users exit exchanges amid post-FTX crash panic, hardware wallet companies see a spike in sales. Czech-based Trezor disclosed that its sales rose 300% week-on-week and are still growing.
According to the company's brand ambassador Josef Tetek, the sales are higher than when Bitcoin reached its all-time high of $68,000 last year. The effect has been coupled with a significant spike in website traffic which surged by 350%.
Ledger, another leading hard wallet producer, has also reported a profit hike. "It's the largest uptick we've seen so far this year. And it's a factor impact, a 2x, 3x type of impact," said Alex Zinder, global head of Ledger, in an interview with Forkast.news.
The hardware wallet bonanza is clearly related to the recent turmoil in the crypto market. At Trezor, the spike in demand started exactly when "rumors of the FTX insolvency started circulating," noted Tetek in the commentary for CoinTelegraph.com.
Crypto platform failures have always served as grist to the mill for cold storage proponents, but the impact coming from FTX's collapse may be unparalleled.
The biggest bankruptcy in the crypto industry history, coupled with the growing security awareness, may sway users in favor of choosing self-custodial devices over external storage providers.
According to Glassnode's data, major crypto exchange platforms have seen a huge decline in their BTC balance, with a shortage of 73,000 BTC recorded in one week.
