Ledger launches new Kindle-like Staxx wallet as exchanges see record bitcoin outflows

by James · December 6, 2022

After a tough period for crypto investors to hold their funds with centralized crypto exchanges, crypto wallet maker Ledger is releasing a new “hardware wallet” called Ledger Staxx.

Like its older devices, the new Ledger Staxx is an offline device that does not hold crypto tokens, but instead maintains an individual’s or company’s private keys to various blockchain wallets.

This type of device is the consumer-preferred segment of what is referred to in crypto as “cold storage.” Ledgers can be connected via Bluetooth or USB-C to other devices and the company’s mobile software, meaning they can switch between on- (“hot”) and off-line (“cold”) storage.

Crypto tokens held on a centralized exchange do not necessarily give users immediate access to purchase or spend coins. And as some users have found out amid several crypto bankruptcies in recent months, centralized exchanges can end up limiting access to holdings even more dramatically.

“Now is the time for a device for more mainstream users. At the same time, we must not compromise on security,” said Pascal Gauthier, Ledger’s CEO and Chairman.

The Kindle-like Ledger Staxx comes with a larger “E-ink” screen. Unlike the company’s most popular wallet, the Ledger Nano, this wallet is larger in size and more in the shape of a thick credit card than portable USB drive.

The new wallet is also meant to be the latest step in the company’s journey to make secure crypto ownership less complicated for a more mainstream customer base.

In November, as FTX collapsed and trust in crypto exchanges quickly eroded, users withdrew their bitcoin holdings from exchanges at the fastest rate on record, data from blockchain analytics platform Glassnode and ARK Invest show.

Net outflows of bitcoin from centralized exchanges averaged 5,870 BTC for the rolling 30-day period ending November 30, according to Glassnode.

On November 10, Ledger experienced a server outage overnight as their platforms saw “massive use” according to chief technology officer Charles Guillemet.

Online — Bitcoin held on crypto exchanges fled these platforms at the fastest rate ever as FTX’s collapse rocked the markets. (Source: ARK Invest)

“We don’t revel in other people’s losses, but this has definitely been good for Ledger,” Ian Rogers, Ledger’s chief experience officer, told Yahoo Finance, referring to the recent turmoil rocking the crypto exchange business.

“Anyone who has self-storage using a Ledger device is fine despite everything that’s happened this year, whether it’s Celsius or a hack or even during periods of misinformation about otherwise good companies potentially going bankrupt,” Rogers added.