No products in the cart.
- Latest
- Trending
ADVERTISEMENT
Interest in hardware wallets that allow cold storage of cryptocurrencies has dwindled among Russian users after a surge this year following the Ukrainian invasion. Sales of these devices have almost halved, according to reports citing major markets.
Retailers selling hardware cryptocurrency wallets in Russia are currently overstocked, market participants told Kommersant, a leading Russian economic daily. That’s because demand for these products exploded earlier this year following Russia’s decision to intervene militarily in neighboring Ukraine.
During the spring months, many Russians sought to acquire cold storage devices for their crypto assets amid growing sanctions over the Ukraine conflict and currency restrictions by the Bank of Russia. Some Russian citizens who emigrate to other countries also took their savings with them in cryptocurrencies.
Hardware wallet sales on the Ozon and Wildberries marketplaces hit a record high of 16.5 million rubles (over $275,000) in May, according to statistics compiled by the Moneyplace analytics service. In August, this figure halved to below 8 million rubles (less than $135,000).
A spokeswoman for Ozone, known as the “Russian Amazon,” said sales in the first half of 2022 were more than five times higher than in the same period last year. Sales peaked in March, according to e-commerce platform M.Video-Eldorado. His Citilink, an online tech store, has launched a hardware his wallet developed by. Tangem Sales began at the end of June and peak sales were reached in July.
Roman Nekrasov, founder of the ENCRY Foundation, which represents IT companies providing services in the field of blockchain and innovation, commented that the decline was caused by the Central Bank of Russia. Relaxation of restrictions About cross-border currency transfers. Furthermore, “those who want to move their assets abroad are probably already doing so,” the expert said.
Declining cryptocurrency wallet costs, both against a backdrop of lower demand and a stronger US dollar, also impacted sales volumes. According to Moneyplace’s estimates, the average price of Safepal’s products fell three times as much as he did between April and September, while Ledger and Trezor recorded twice as much as he did, while Tangem’s prices fell a quarter of his. 1 fell. This trend was confirmed by Wildberry.
Cryptocurrencies are not yet comprehensively regulated, so the use of cryptocurrency wallets is not restricted by current Russian legislation. Aaron Chomsky, head of the investment department at the ICB Fund, believes future improvements in the cryptocurrency market can help restore demand for his hardware wallets.
Do you agree that sales of refrigeration equipment will increase again in Russia if the cryptocurrency market improves? Share your expectations in the comments section below.
image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com It is not intended to provide investment, tax, legal or accounting advice. NEITHER THE COMPANY NOR THE AUTHOR WILL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY DAMAGE OR LOSS ARISING OR ALLEGED TO OCCUR ARISING OUT OF OR RELATING TO YOUR USE OF OR RELIANCE ON ANY CONTENT, PRODUCTS OR SERVICES DESCRIBED IN THIS ARTICLE. We are not responsible.
