Scott Galloway is making quite a name for himself. Famous for his podcast and marketing acumen, the New York University (NYU) professor has also become something of a business magnate.
Through his digital branding and research company L2, Galloway has been making significant waves even in investment. His recent investment was to participate in the Series C funding round for Ledger - one of the most prominent crypto wallet services.
New Money from an Informed Investor
Ledger’s Series C was completed in June. According to an official press release, the company raised $380 million at a valuation of $1.5 billion. Ledger’s funding round included some notable investors, including Draper Associates, Cathay Innovation, and Wicklow Capital. But, deep in the announcement was confirmation that Galloway had also invested.
The investment in Ledger is an interesting view of Galloway and his opinions on crypto. The entrepreneur has been a fan of cryptocurrencies, and he has let his views be known several times. Earlier this year, he dove into the topic of non-fungible tokens (NFTs) at the height of the craze for these assets through his podcast - the Prof G Show.
Galloway has continued to advocate for regulations as well. Following the backlash that Elon Musk got for his involvement with crypto, Galloway told CNN that Musk was inviting scrutiny from the Securities and Exchange Commission (SEC). As Galloway explained, a healthy crypto market will be immune to manipulation from a single entity - no matter how famous such a person or company is.
“We are seeing that, in fact, one individual does have incredible influence over the market… It feels like Elon Musk is waving, thumbing his nose in their face. “It doesn’t feel like a healthy market.”
Galloway isn’t the only one to call for regulation in the market, although he seems committed to investments in the space. With Ledger, Galloway has perhaps the perfect company.
Ledger has proven to be one of the most recognizable brands in crypto. The company essentially holds a duopoly when making crypto wallets, with its only real competition being Trezor - a wallet manufacturer based in the Czech Republic.
Ledger’s Move Into ETH Staking
Currently, Ledger’s next objective is to conquer the staking space. Last month, the company announced that it had partnered with Lido Finance - the Ethereum 2.0 staking solution - in a move that will offer additional liquidity and accessibility to independent stakers.
Staking has become incredibly popular within the crypto ecosystem. It allows users to stake their assets - whether individually or collectively - while also getting passive income. Their work also contributes to the sustainability of the cryptocurrency’s blockchain network. It is much more environmentally sustainable than mining, and it still functions just as well.
Given that Ethereum is one of the most popular cryptocurrencies, there was a great deal of excitement when the coin’s developers announced that they would be transitioning to proof-of-stake (PoS). However, users looking to stake their ETH in the past have been faced with several economic challenges. Becoming an Ethereum 2.0 validator currently costs almost $100,000 - a figure that is much more than what many investors can afford.
Even cryptocurrency exchanges now offer centralized ETH 2.0 staking. But many of them carry a significant fine. This is in addition to the trust problem and the chances of hacks. For investors who understand the value of asset autonomy, centralized staking might not be the best option.
Recently, Ledger has offered decentralized staking for coins. With decentralized staking, users have more control of their coins - although this also means that they are responsible for things like security and accessibility.
Ledger already had decentralized staking options for coins like Tezos and Polkadot. But, the market for staking is mostly dominated by Ethereum. Now that the service is integrated with Ethereum, the service has a significant opportunity to corner the market. The partnership eliminates the barrier to entry for staking, allowing users to stake any amount of ETH - as opposed to the 32 ETH that is usually required to stake the coin.