Amid growing concerns about centralized cryptocurrency exchanges in the wake of the FTX crisis, investors are increasingly turning to cryptocurrency wallets.
Major hardware wallet provider Trezor has reported a spike in wallet sales in the wake of the FTX infection, the company’s brand ambassador Joseph Titic told Cointelegraph on November 15.
Trezor has seen its sales revenue increase 300% week-over-week and is still growing, Tetek reported, adding that current sales are higher than they were a year ago when Bitcoin reached an all-time high of $68,000. The CEO noted that Trezor also recorded a huge spike in traffic to its website, which increased by 350% over the same period.
According to Tetek, Trezor is pretty sure the uptick in new wallet users was the result of issues with FTX, a crypto exchange that was at the center of a recent industry scandal involving misappropriation of users’ funds. The spike in demand for Trezor wallets began early last week, exactly when “rumors of FTX bankruptcy began circulating,” Titic reported.
Trezor expects more growth in new users in the near future as the failure of crypto brokers will only continue, Tetic suggested, saying:
“We expect this trend to continue in the short to medium term, as FTX failure contagion continues to wane and bitcoin or cryptocurrency holders lose confidence in custody and finally begin to explore their options for self-custody over their digital assets.”
According to the executive, Trezor is able to meet current demand levels in the short to medium term. “Even if sales continue at this high rate, we are confident that there will be a limited impact on our inventory over the long term, as we were already planning to increase sales,” Tetic said. He also noted that Trezor does not plan to increase the prices of its hardware wallets in line with its vision to make “self-custody more affordable.”
Despite the uptick in demand and the accompanying increase in support requests, Trezor has no plans to expand staffing. “We didn’t have to downsize because we were ready for a prolonged and deep bear market,” Tetek stated, adding that Trezor currently employs a total of 100 people working in multiple locations, with the majority based in Prague.
Cryptocurrency investors are increasingly turning to self-preservation through software and hardware wallets, with exchange inflows approaching an all-time high by mid-November 2022.
Ledger, a major competing hardware wallet supplier, has recorded a huge increase in demand for its hardware recently as well. The French cold wallet company had one of its highest traffic days ever shortly after FTX halted all cryptocurrency withdrawals last week, prompting inventors to dump their funds from exchanges into cold storage as soon as possible.
Related: CZ, Saylor Urge Crypto Holds Amid Growing Uncertainty
Amidst the ongoing FTX contagion, even some of the largest cryptocurrency exchanges have begun touting the need for self-custodianship. Binance CEO Changpeng Zhao admitted on November 14 that centralized exchanges may not be necessary anymore as investors will turn to self-custodial solutions such as hardware or software wallets.
“If we can get a way to allow people to hold their own assets in their own custody safely and easily that 99% of the general population can do, then centralized exchanges wouldn’t exist or might not need to exist,” the CEO said.