Interest in hardware wallets allowing cold storage of cryptocurrencies is decreasing among Russian users after this year’s surge that followed the invasion of Ukraine. According to leading marketplaces, the volume of these devices has almost fallen by half.
Russians’ Demand for Cold Storage Wallets Cools Down After Spike This Spring
According to market participants, Russian retailers selling hardware wallets for cryptocurrency are overstocked. Kommersant is the most prominent Russian daily. That’s after earlier this year these products saw an explosive demand after Moscow’s decision to militarily intervene in neighboring Ukraine.
Many Russians wanted to purchase a cold storage unit for crypto assets in the spring, amid increasing sanctions on Ukraine and the currency restrictions by the Bank of Russia. Some Russian residents who relocated to another country also brought their crypto-currency savings.
The Moneyplace analytics service compiled stats that showed hardware wallet sales in the Ozon-Wildberries markets reached an all time high of 16.5 millions rubles in May, which is more than $275,000 according to Moneyplace statistics. This figure decreased by half in August to 8 million rubles, or less than $135,000,
A spokesperson for Ozon, known as “the Amazon of Russia,” said that the number of units sold increased more than five times in the first half of 2022, compared to the same period last year. M.Video-Eldorado e-commerce platform added that March was the peak month for sales. Citilink, an online tech shop launched a Tangem-designed hardware wallet at the end June. Its sales hit their highest point in July.
Roman Nekrasov is the founder of ENCRY Foundation. This foundation represents IT companies that provide services in blockchain and other tech innovation areas. In addition, “those who wanted to transfer assets abroad, most likely, have already done so,” the expert remarked.
With the U.S. dollar increasing in value and the demand for crypto wallets decreasing, sales volume was also affected. According to the estimates of Moneyplace, the average price of Safepal products fell three times between April and September, Ledger and Trezor registered a two-fold drop, while Tangem’s price lost a quarter. Wildberries confirmed the trend.
Russian law doesn’t restrict the use crypto wallets, as cryptocurrencies have yet to be fully regulated. The report quotes Pavel Ganin from the A.t.legal legal firm. Aaron Chomsky is the head of the Investment Department of ICB Fund and believes that a rebound in hardware wallet demand can be expected as a result of future improvements to crypto markets.
Are you convinced that Russia will see a rise in cold storage device sales if the crypto market improves? Comment below to share your hopes and fears.
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