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A technological gem
The unicorn employs 600 people and realizes “several hundred million euros in turnover”according to the boss, rather stingy with figures, architect of a spectacular strategic turnaround. Because in addition to a new headquarters, Ledger is also celebrating the arrival on the market, 18 months late, of a new product: the Stax, a very designer and high-end cryptocurrency wallet, marketed at around 400 euros . It completes its range of Nano and Flex devices, sold between 79 and 249 euros. Above all, it takes the company out of its very tech world to propel it into luxury.
The Stax required two and a half years of development and a budget of 50 million euros. Pascal Gauthier cites Steve Jobs, his model: product first, technology second. “Product design begins with its packaging”he assures. On the design side, he called on the services of Tony Fadell, the designer of the Apple iPod.
Result: an object the size of a matchbox equipped with a curved electronic ink screen. “It never happened”ignites the boss of Ledger. Hence the big delay in switching on this technological gem, manufactured in Vietnam, near Hanoi, by the giant Foxconn.
Bifurcation marketing
In the mind of the businessman, it is indeed a luxury accessory. It’s not easy to explain this bifurcation to your teams and to the market. “I needed a story teller”he said. At the same time, he recruited Ian Rogers, formerly of Apple, former digital director of LVMH. “Marketing had a budget of 80 to 100 million euros”assures a former employee. The small company launched itself into organizing very trendy, very luxurious, very expensive events, with creatives and big brands.
Pascal Gauthier at Ledger headquarters, in 2023. Credit: samuel kirszenbaum/SDP
With Fendi, in particular, it launched handbag-shaped cases to house its Nano wallet. For the bling-bling crypto-investor, there is also this necklace from which the device hangs. A team was also formed to develop partnerships, particularly with artists, in the metaverse and the segment, a promising moment, of NFTs, non-fungible tokens, with mixed success. “They transformed a cybersecurity company into a luxury company”laments a former employee. And the clashes multiplied between the high-flying engineering teams and the new design and marketing recruits, most of whom came from the United States.
Around twenty complaints
Ledger no longer has much to do with the very geeky spirit and open culture of the beginnings. Almost the entire original team has left, like the emblematic Eric Larchevêque, one of the co-founders, who decided to take a step back in 2019. The start-up had already raised more than 75 million dollars, its turnover had crossed 100 million but the marketing of its Nano model was three months late. The entrepreneur believed that a new profile was needed to enable Ledger to take a new step. “Pascal managed the transition from 75 to 400 million fundraising very wellestimates an elder, but then he should have stepped aside. »
In March 2023, the company again raised 100 million euros before getting rid of 12% of its workforce, seven months later, when bitcoin was at its lowest. Along the way, it has been the target of several cyber attacks. One, targeting a former employee, took advantage of a security breach lasting several hours.
Another, in 2020, delivered one of its databases to attackers, leading to fishing campaigns for several years against its customers. Around twenty civil complaints have just been filed against Ledger, who also received a fine from the CNIL.
The old guard has left the ship
These attacks are part of the daily life of the company, which historically has one of the best cybersecurity laboratories in the world, the Donjon, made up of around ten experts. An advantage that could serve as a powerful marketing argument. But communication is not management’s strong point.
Last year, the group aroused the incomprehension and even the anger of a section of its community by releasing a new optional paid service, Recover, allowing users to recover their private key in the event of loss by entrusting a copy of it. -this to three third parties. An unacceptable attack on the very principle of sovereignty which motivates the most ultra clients, who are very attached to total ownership of their cryptoassets.
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Above all, it was the lack of vision at the top that prompted the last representatives of the old guard to jump ship during the social plan. Valued at 1.3 billion euros during its last fundraising, Ledger suffered a clear discount on the secondary market, while the stock options plan was an important motivating argument according to the CEO, who, at the end of 2023, was aiming for a valuation of 100 billion.
Towards an IPO?
“Pascal is a character in venture capitalestimates an elder. He has the power of seduction, he knows how to convince. » Rather than moving towards luxury and art, many in the company would have wanted Ledger to branch out into services. “They should develop into more exotic finance, offering services and products that banks do not offer, due to lack of sufficient margin”suggests one of the co-founders.
Pascal Gauthier, for his part, foresees an acceleration of the market for the second half of 2025. And why not an IPO. Ledger has been preparing for this for three years “but opportunity decides the timing”, decides the CEO. A very opportunistic vision.
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Honeymoon between Trump and cryptocurrencies
For the first time, bitcoin crossed $90,000. The cryptocurrency community celebrated the election of Donald Trump last week in its own way. Mistreated under the Biden administration, the crypto world has high hopes from the future tenant of the White House, who made numerous encouraging gestures during his campaign. The industry did not skimp: for the presidential and parliamentary elections, it donated 170 million dollars to support Republican candidates favorable to its ideas. And everyone hopes that the 47th American president will keep his promise to relax regulations. And to get rid of the head of the SEC, policeman of the Stock Exchange, Gary Gensler, supporter of a hard line.
Does Ledger’s focus on luxury branding alienate its core user base of crypto enthusiasts who prioritize security and functionality over aesthetics?
## Ledger: From Cybersecurity to Luxury, A Technological Gem or A Brand Overhaul?
Welcome to World Today News exclusive interview. Today we’re delving into the fascinating world of cryptocurrency technology and the French unicorn company, Ledger.
Joining us are:
* **[Guest 1 Name]**, a prominent figure in the tech industry with expertise in cybersecurity and hardware development.
* **[Guest 2 Name]**, an experienced financial analyst specializing in blockchain technology and cryptocurrency markets.
Today’s discussion will revolve around Ledger’s recent strategic shift from a purely cybersecurity-focused company to a luxurious, high-end brand.
**I. The Design Revolution: Function over Form or Form over Function?**
* [Guest 1] Ledger’s Stax wallet is described as a technological marvel, with cutting-edge design inspired by luxury brands. Do you see this design focus hindering or enhancing the core functionality of a crypto wallet?
* [Guest 2] How does Ledger’s move towards luxury branding align with the decentralized, open-source ethos often associated with cryptocurrencies?
**II. Branching Out: Is Luxury the Right Path for a Cybersecurity Company?**
* [Guest 1] The article mentions Ledger’s collaborations with luxury fashion houses and metaverse projects. Where do you see this diversification leading the company? Is it innovative or a risky distraction from its core strengths?
* [Guest 2] Ledger’s CEO cites Steve Jobs as inspiration, emphasizing product design first. Do you think this approach is transferable to the cryptocurrency market, where functionality and security are paramount?
* [Guest 1] The company has faced criticism for undergoing a major cultural shift, alienating original team members who preferred a more tech-centric approach. How important is it for a company like Ledger to maintain its original culture even as it evolves?
**III. Navigating Controversy: Security Breaches, Controversial Features, and Regulatory Scrutiny**
* [Guest 2] Despite its strong cybersecurity reputation, Ledger has faced several data breaches and legal issues. How can the company address these concerns while simultaneously pursuing an aggressive growth strategy?
* [Guest 1] The “Recover” service, which allows users to regain access to their)](private keys) through third parties, has been met with resistance from some in the crypto community. Do you think this reflects a misunderstanding of the target audience or a fundamental clash between Ledger’s values and blockchain principles?
**IV. Looking Ahead: IPO Dreams and the Future of Cryptocurrency Hardware**
* [Guest 2] Ledger’s CEO has publicly stated his aspiration for a 100 billion dollar valuation through an IPO. Given the current market volatility and regulatory uncertainty, is this a realistic goal?
* [Guest 1] What is your opinion on Ledger’s future? Will their foray into luxury and NFTs be successful in the long term? How can they navigate the competition from both established cryptocurrency giants and burgeoning hardware startups?
Thank you so much to [Guest 1] and [Guest 2] for sharing their valuable insights on the captivating journey of Ledger. We hope this discussion has shed light on this complex and rapidly evolving space within the world of technology and finance.
