Ledger aims to fine-tune the pitch for untouchable crypto wallets

High-profile hacks and funds being locked up on struggling platforms are nightmare headlines for the crypto industry as it seeks to win over new believers, but for some hardware companies like Ledger, they’re prime marketing material.

Why it’s important: Most blockchain veterans believe that cold storage – keeping crypto offline and off the internet – is the safest way to store digital assets. Self-custody, by holding these digital assets directly, also protects owners from the fickle policies of [name your exchange].

• But convincing users to take good care of their crypto keys, crucial if you ever want to access your wallet again, requires finesse – and that means marketing with local people in mind.

Status: Hardware wallets — if you know what they are, chances are you’ve seen them and heard about them.

• You may have seen one on Showtime’s Billions, or for sale at Best Buy. You’ve probably heard a reference to it indirectly in the phrase “not your keys” – a maxim that becomes more insistent as crypto-jacking picks up.

Details: The appeal of Ledger’s USB stick-like crypto wallets is in their utility, enabling cold storage and self-storage of assets.

• The Paris-based company’s marketing script has become more relevant than ever, Pascal Gauthier, CEO of Paris-based Ledger, told Axios. “When what we warn against happens, it looks like we’re smart.”

With the numbers: Since Ledger’s inception in 2014, it has sold more than 5 million units and started the second half with 50% year-over-year revenue growth, according to Gauthier, who says the numbers would have been even higher if it weren’t for the decline in coin prices.

• He pointed to several events, highlighting Celsius Network’s halting customer acquisition and eventual bankruptcy that drove the sale.
• Of the note: Ledger isn’t the only maker of hardware wallets, with other brands including Trezor, KeepKey and Coldcard. But it’s generally considered the leading wallet provider in crypto, and Best Buy’s choice to stock the hardware first likely reflects that position.

Between the lines: Despite the one marketing message, Ledger wants to cater to customers who live in non-English speaking countries. And each country’s unique relationship with crypto means that local marketing approaches can vary.

• “High inflation and mistrust of the government in Argentina means that people there look at crypto differently, so marketing should be completely different there than in France or Lebanon, for example,” says Gauthier.
• For countries like Argentina and others in similar macro environments, crypto is considered a safe haven, he says.
• In France and most English-speaking countries, on the other hand, crypto is treated as an investment like stocks or bonds.

“In the future, we will build specific features for your country, he adds, saying that certain coins have greater recognition in Korea, for example.

• The company is literally working to translate its website and build out native-speaking support teams for potential customers in Asia, an underpenetrated market, according to the CEO. “Ledger will speak all the languages ​​of the world.”

What’s next: Ledger teamed up with The Sandbox to launch a minecraft-style game called “School of Block” that teaches players how to become a crypto-security master through various challenges.

• It has also recently rolled out its own non-fungible token marketplace, touting it as “the most secure platform” for NFT drops.

Context: Ambitious growth plans may be harder to execute amid the crypto winter, but even with the threat of capital markets tightening, Ledger was reportedly in talks to raise $100 million in a funding round that would drive its valuation higher than the $1.5 billion it raised in June 2021.

Flashback: Ledger has not been without setbacks, in 2020 the company was the victim of a hack due to a vulnerability on the website where a third party had access to customer information, such as email.

• The security of the customer’s assets on the hardware was not compromised.

It is also very conscious of companies that can steal market share.

• “Our big problem is [competitive] Safety. “For us, the threat comes from everywhere, from startups like us, but larger, publicly traded companies in the financial world that think about hardware,” says Gauthier, listing Apple, Samsung and, to a lesser extent, Square as competitors.
• Gauthier says he’s never personally been robbed or hacked because he’s “very careful.”

The bottom line: The company’s long-term strategy is mass market, but it’s not quite there yet. “We’ve always said we’re going from business-to-geeks to business-to-consumer, but crypto needs to reach mass adoption first,” says Gauthier. “Then maybe Ledger will be in the convenience store.”