JRNY Crypto
Samsung Invests $ 2.9 Million in Ledger
Samsung has decided to invest $2.9 million in the cryptocurrency hardware wallet manufacturer Ledger. The investment amounted €2.6 million and it gives a valuation of €260 million to the company. The multi-million dollar investment in Ledger comes from Samsung after injecting $ 4 million in ZenGo, an emerging company developing keyless crypto wallets.
Samsung’s commitment to the digital currency sector is likely to be a catalyst for investors’ confidence in the long-term prospects of the market
Why Samsung invests heavily in digital currency portfolio?
We may say that The investment news comes shortly after it was reported that Samsung is working on its own blockchain-based network and a cryptocurrency token named Samsung Coin. Samsung has also recently led a $4 million funding round in ZenGo, developers of keyless crypto wallets.
While Samsung’s investment represents just 1 percent of Ledger’s new valuation, this investment was potentially just the beginning, and Samsung had bigger ambitions with Ledger for the future.
In any case, this move further solidifies Samsung’s real interest in blockchain technology.
Earlier this week, Coindesk Korea, the digital currency news site, reported that Samsung was testing the currency of Samsung Coin and the ERC20 protocol based on ethylene plaque.
An insider told the local media:
“The BLOC has presented several models and are being evaluated. There are many platforms that already work after some internal tests. “
Samsung has been in the news during the last months because it seems that the company is trying to have a larger influence on the virtual currency and blockchain space. The South Korean giant launched the Samsung Galaxy S10 that includes a crypto and blockchain wallet integrated into the phone.
At the same time, Samsung could eventually launch a cryptocurrency token after launching its own Ethereum-based blockchain network. According to a recent report released by CoinDesk Korea, an anonymous source that knows the projects that the company has informed that Samsung could be developing a public-private blockchain based on Ethereum.
Pascal Gauthier, the new CEO of Ledger Ledger, said in an email:
“While many digital owners of Ledger trust their digital currencies, companies that manage large amounts of digital currencies, such as institutional investors, family offices and exchange platforms, are also starting to trust us.”
What is the importance of ledger wallet for storing cryptocurrencies?
Because your Internet service providers can be easily hacked or have information stolen, this makes our small unit systems and mobile devices vulnerable as well. The most important thing about your wallet is your seed key/private key/recovery key. Therefore you don’t want it generated or stored on a device that could easily be hacked.
With the Ledger Nano Wallet, your private keys are seen by you alone through the OLED screen of the device. It is not accessible through your personal computer neither can it be copied. This leaves your private keys safe right on the device for your eyes alone to see.
Another level of security comes with you setting up a passcode for the device. If you lose it or it gets stolen, it’s of no use to whoever sees it unless the person can figure out your pin code in 3 trials. Failure to do so returns the device to factory setting, and your private keys would be required again.
Different type of ledgers:
Ledger is known for its hardware storage wallets, including the Ledger Nano S. Their latest product is the Bluetooth-enabled device the Ledger Nano X. The Nano S can hold a maximum of four cryptocurrencies but the Nano X holds up to 100. Ledger claims that both models have “their own advantages, complementing each other and catering to different types of users”.
Last year, Ledger raised $ 75 million by Tim Draper, Boost VC, Draper Esprit. At the time, Ledger said the financing round was “oversubscribed” and that it was the largest B round in 2018.
The Group B financing round was secured by the Company to improve its hardware manufacturing operations and support individual investors.
Eric Larchevêque, the co-founder of Ledger, said in 2018:
“For the governor, we integrate the operating system into a secure chip. For Vault, we integrate it into a physical security module. The idea behind this is to offer additional features and services, such as multi signatures or multisignatures.”
Samsung’s new financing round is likely to increase Ledger’s potential growth in a relatively new sector of digital currency preservation
Expect more deals
Samsung is already heavily involved in the digital currency market through its manufacturing of mining equipment, the Samsung Blockchain Wallet, as well as investing in many projects related to digital currencies.
With the development of the main network of Samsung’s digital currency from its final stage, the company may enter into more deals that can eliminate barriers between digital currencies and key users.
Based on Samsung’s investment in ZenGo and Ledger, it is clear that the company prefers startups that facilitate the use of digital currency in day-to-day operations.
Thus, the investment that Samsung has just done on Ledger is very important for the firm and is related to the projects in which is currently focusing on. At the same time, This new investment shows the will of Samsung to further strengthen the security of crypto assets.
