Sales of Trezor increase by 900% despite Reddit scam alerts
Hardware wallet maker Trezor’s sales have increased by 900% week-over-week, even though Reddit users have warned that fake Trezor phishing websites are being promoted across social media.
A Reddit user named bitcoin-o-rama warned other Reddit users that scammers are paying to promote fake Trezor sites and advised them not to click on any of these ad links.
Proposed New Ledger Feature Gives Crypto Investors the Jitter
The increase in Trezor sales comes after its major hardware wallet rival Ledger proposed a new feature that made some cryptocurrency investors nervous.
Ledger’s proposed feature, called Recover, allows users to export their wallet’s private keys to Ledger in order to help them recover their crypto if they lose their private keys.
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Private keys, which are sometimes referred to as seed phrases, are a series of random words that provide access to a user’s crypto wallet (and therefore their crypto) and should be kept secret.
The proposed feature unnerved Ledger wallet owners who feared that Ledger might suddenly gain access to their private keys, compromising their crypto’s security.
Under the wallet makers’ proposal, the private keys would be exported to three separate parties and involve a user providing their identification.
“The crypto community has spoken loudly and clearly on their insistence for uncompromised security of hardware wallets and this is echoed in an extraordinary bounce in our sales over the past week” said Trezor CEO Matej Zak in a statement shared with crypto news outlets.
But Trezor Has Its Own Issues
Ledger has clearly upset some of its users with its latest proposed update, which some Ledger wallet owners have interpreted as a sign that the security of their private keys is compromised.
However, anyone considering a switch to a Trezor wallet should be aware that Trezor wallet security is not perfect either.
In 2020, crypto exchange Kraken identified a critical flaw in Trezor T and One models.
The cryptocurrency exchange’s security arm developed a way to extract a user’s private keys from both wallets with only 15 minutes of physical access to the device.
Meanwhile, digital asset recovery firm Unciphered recently released a video on YouTube claiming to demonstrate how to gain access to a private key on a Trezor T wallet.
Hardware Wallets Remain Most Secure Option
Hardware wallets such as those made by Trezor and Ledger are not completely impenetrable.
That means that wherever crypto owners choose to store their assets (hot wallet, cold wallet, with a centralized custodian), there will always be some risk involved.
However, analysts still view hardware wallets as the most secure option.
The fact that private keys are stored offline means that it is significantly more difficult for malware, phishing attempts, and other online threats to gain access to them.
Hardware wallets are often built with tamper-resistant and tamper-evident features, making it difficult for anyone aside from seasoned experts to hack into them.
Most hardware wallets also require a PIN or passphrase for access to the device, which adds an additional layer of security.