Ledger has experienced some issues due to massive outflows from crypto exchanges amid the FTX collapse, according to its chief technology officer.
Ledgersaw a massive usage of their platforms and suffered a few scalability challenges as reported by Ledger chief technology officer Charles Guillemet.
Guillemet reasoned Ledger’s issues by the outcomes of the ongoing crisis of a major global cryptocurrency exchange, FTX. The CTO said that crypto investors have been increasingly offloading their holdings from crypto exchanges to Ledger.
Ledger first reported the wallet issues on Nov. 9 at around 11:00 pm UTC, officially announcing that its hardware wallet interface application Ledger Live was experiencing downgraded server performance.
The hard wallet company subsequently took to Twitter to announce that it fixed the server outage about one hour after detecting the issue. Previously, Ledger Support also announced that it also temporarily paused FTX and FTX.US swaps on Ledger Live. Ledger launched the swap integration with FTX in July 2022.
The crypto community was quick to react to the issues despite many staying confident about Ledger’s operations amid the larger market issues. Some industry observers criticized Ledger for choosing the wrong wording to communicate with their customers amid the ongoing issues at FTX. People apparently got triggered by Ledger’s wording “assets are safe” as FTX founder Sam Bankman-Fried made a similar statement on Twitter on Nov. 7, only to delete it a day after.
“FTX is fine. Assets are fine,” Bankman-Fried declared in his tweet, just hours before the exchange stopped all crypto withdrawals after becoming unable to process such transactions.
The recent issues on Ledger Live came as Ledger saw one of its “highest traffic days ever,” Ledger’s chief technology officer told Cointelegraph. “Traffic has increased significantly over time, even without major industry events,” he noted, adding that Ledger also previously saw plenty of traffic spikes after Celsius bankruptcy, the Solana hack as well as the FTX bank run.
Despite self-custody being associated with its own set of risks, many crypto people, including Tether and Bitfinex chief technology officer Paolo Ardoino, still recommend users “always to self custody in cold storage” if they want to hold their Bitcoin and crypto.
