As Crypto Exchanges Struggle in a Bear Market, Are Hardware Wallets About to Come Back? – Tech Crunch

The crypto hardware wallet industry, somewhat eclipsed as crypto exchanges grew in popularity, may be due for a gradual comeback. As some centralized crypto exchanges struggled with their operations as cryptocurrencies fell in value and users clamored to withdraw funds, this increase in instability may have spurred interest in the cryptocurrency industry. “cold wallet”. According to a report, the global hardware wallet market reached a value of $252 Million in 2021 and is expected to reach a value of $1.1 Billion by 2027, growing at a CAGR of 27.2%. This would suggest that it could surpass the reported 12.7% growth rate of crypto exchanges, with an expected market revenue value of $675 million by 2028. Read what you will.

Suffice it to say that in this bear market is launching SF-based Hito, which bills itself as an “iPod for crypto”, Hito is the size of a credit card, has a large multi-touch screen and is connects to wireless devices.

Hito may be pushing a door ever wider open. Given that two of the major hardware wallets, Ledger and Trezor, have around 5 million users, there seems to be plenty of room for growth, as there are at least 295 million crypto holders who can decide to add from hardware wallets to their wallet.

Hito is priced at $149. This contrasts with – for example – the cheaper Ledger NANO S which costs around $65. Hito’s argument for that extra cost is that transfers can be done wirelessly using Bluetooth or NFC, while updates and charging are also wireless. So I assume you are paying to remove the USB connector?

However, there are other features. These include a 2-inch multi-touch color screen that displays your crypto assets; support for over 600 digital assets, including Bitcoin, ETH and ERC20 tokens; connections to other wallets such as WalletConnect, MetaMask, Trust Wallet, Argent, Gnosis Safe Multisig; a single system-on-chip; support for multiple wallets and PINs; and the shielding of electromagnetic signal readers.

If Hito is as easy to use as it claims, it may have a chance in the market, given current conditions. And it’s fair to say that many hardware wallets require a lot more technical skill than the average person can muster, so any simplification is welcome.

I asked Founder Mike Kirillov, CEO and Founder of Hito, why he thinks Hito has a chance in this current environment: “Previous hardware crypto wallets were built for geeks and by geeks. They’re bulky, require technical skills, are difficult to interact with, and always look like you’re about to do something wrong. In the end, they couldn’t become a mainstream solution, which means most crypto holders’ funds are not safe,” he said.

Kirillov says his team spent three years building Hito in Stealth Mode as “a ubiquitous, easy-to-use device with great UX. It’s a sleek, intuitive, and ultimately protected hardware wallet that mainstream consumers can rely on,” he says.

Certainly, the more mainstream crypto becomes, the more crypto fraud and scams are on the rise, furthering the hardware wallets argument. Crypto scammers took a record $14 billion in 2021 (79% YoY growth).

And $1.23 billion was lost in the first quarter of 2022, almost 8 times more than a year ago, according to a report by Immunefi, largely because scammers can access crypto accounts in line.

Hardware wallets cannot be hacked through the cloud in the same way because your credentials never leave the device.

However, it remains to be seen whether Hito will be able to attract more users to the exchanges, and hardware wallets can also simply be physically lost.

Leave a Comment

Your email address will not be published.