Binance exchange turns to investment into hardware wallets as they are getting more popular
Chinese crypto journalist and blogger Colin Wu has shared that Binance has made a new move in expanding on the cryptocurrency market. It has chosen a product whose popularity and demand suddenly rose due to the FTX collapse.
Binance invests in NGRAVE wallet maker
A recently published blog post by Binance sheds some light on the aforementioned deal. Binance Labs is leading the approaching Series A round for NGRAVE, according to the blog post.
The goal is to boost self-custody of cryptocurrency and back this particular wallet with a key back-up that is encrypted and can be recovered. The CEO of NGRAVE, who also co-founded it, claims that his company has managed to avoid the limitations of modern mnemonic crypto wallets, which are widely used at the moment. They will be offered to both retail users and institutional crypto investors.
Binance Labs has made a strategic investment in hardware wallet maker NGRAVE and will lead its upcoming Series A round. Currently, the sales of hardware wallets are soaring due to the FTX crash. https://t.co/NaAtSfDPyL
— Wu Blockchain (@WuBlockchain) November 21, 2022
Here’s why Binance got warning in Singapore and FTX did not
The Monetary Authority of Singapore (MAS) has addressed the issue of why it gave Binance a warning last year but did not take similar measures against the now-bankrupt FTX giant.
In September of last year, the regulator said, Binance was put on the Investor Alert List (IAL), unlike FTX, since the former was actively shilling its products to local investors and FTX did not do that, while neither company had a license to offer their services in the country.
Binance went as far as offering crypto trading of coins against the local fiat currency — Singapore dollars.
Also, in August 2021, MAS received many complaints against Binance for soliciting investors in Singapore without the necessary licence. There were no signs of FTX doing the same, the MAS statement says. Besides, FTX trades were not conducted in local dollars.
Cryptocurrencies and exchanges may fail, MAS claims
Finally, the regulatory authority said that the lesson to be learned from the situation with FTX is that any crypto exchange may fail and any operations with cryptocurrencies are hazardous — on any platform.
Even if an exchange is well managed, it continues, crypto assets are still highly volatile and can lose value fast.