If you are a little interested in cryptocurrencies, you certainly already know that the ecosystem is currently going through a new crisis. And this time, it’s one of the major players who has problems.
This week, it was discovered that FTX, one of the major cryptocurrency exchanges, is having liquidity issues. While competitor Binance had offered to save this one, it ultimately decided to back out of the takeover deal.
To get its head above water, FTX needs to find funds. But given the situation, and the many revelations, it could be complicated.
10) So, right now, we’re spending the week doing everything we can to raise liquidity.
I can’t make any promises about that. But I’m going to try. And give anything I have to if that will make it work.
— SBF (@SBF_FTX) November 10, 2022
In any case, this has led to a new cryptocurrency crisis, as well as drops in the value of cryptos such as Bitcoin or Ethereum.
French Ledger had a server failure
A priori, this situation is not good for anyone. Binance boss Changpeng Zhao recently explained to his employees that a fall in FTX is not good for anyone in the industry.
Indeed, according to him, public confidence has been shaken. And these events will cause stricter regulations, while making licenses more difficult to obtain, for players in this industry.
Nevertheless, the loss of confidence in cryptocurrency exchanges seems to have prompted investors to massively transfer their assets to French Ledger’s secure storage solutions (read our guide to understand what the different types of crypto storage are).
On November 10, Ledger Technical Support confirmed the existence of a server outage that may affect some functionality of Ledger Live. The company also ensured that user assets were safe. And the problem was solved pretty quickly.
Watch out 📢
Our server outage has been resolved and all systems are operational.
Should you have any issues persist, please let us know and we’d be happy to help.
We appreciate your patience and understanding!🤝
— Ledger Support (@Ledger_Support) November 10, 2022
In a tweet, Ledger CTO Charles Guillemet explains that following the fall of FTX, there has been a massive flow of activity from exchanges to the company’s solutions.
“We are seeing heavy usage of our platforms and have experienced some scalability issues tonight”he also said.
After the FTX earthquake, there’s a massive outflow from exchanges to @ledger security and self-sovereignty solutions ✊
We see a massive usage of our platforms and had a few scalability challenges this night. It should be resolved now. https://t.co/a1Le91tNZF
—Charles Guillemet (@P3b7_) November 10, 2022
Moreover, in the current context, Ledger does not hesitate to recall the interest of not storing cryptos and other digital assets on exchanges.
“#Crypto was invented to be #decentralized and #transparent, not to rely on centralized entities prone to mismanagement or hacking”recalls for example Pascal Gauthier, the CEO of the French company.
“Winter is coming, stay safe. Ledger is here to help”can we also read in another tweet from the CEO.
Winter is coming❄️ Stay SAFE. @Ledger is here to help 🙏 https://t.co/GIiuh9jQKm
—Pascal Gauthier @Ledger (@_pgauthier) November 9, 2022
Quoted by our colleagues from Cointelegraph, Trezor, a competitor of Ledger, claims that it has not suffered a breakdown. However, the company also points out that these events are a reminder of the need to store assets on “non-custodial” wallets.
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