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Ledger CEO Pascal Gauthier. Photo by Getty.

The Volatility of Crypto Customer Loyalty

Photo: Ledger CEO Pascal Gauthier. Photo by Getty.

Crypto fans are freaking out! What else is new? Over the past week, the crypto hardware wallet maker Ledger came under fire for a product update that customers worried could jeopardize the safety of their digital assets. That prompted an apology from the company over how the change was communicated. And this is a familiar rhythm for crypto startups, which increasingly are being forced to alter—or at least jump through hoops to explain—their plans in order to appease hyper-vigilant customers. 

To recap, Ledger sells USB drive-like devices on which people store private keys to their crypto wallets offline—that’s viewed as a more secure method for safeguarding crypto compared to software wallets or centralized crypto exchanges. The company has raised more than $577 million from investors including 10T Holdings, True Global Ventures and it landed a $1.4 billion post-money valuation in March, according to PitchBook.

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