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Ledger Controversy Explained

Pudgy Penguins' Toys On Amazon

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Here is the breakdown of today's newsletter:

🔐 Ledger Controversy Explained
🐧 Pudgy Penguins Toys On Amazon

  • Believe it or not, the first Bitcoin purchase ever was actually a NFT JPEG!

  • The community is not happy with Ledgers' new KYC feature. Check out the full breakdown. (@0xfoobar)

  • Some users have expressed their disappointment regarding Yuga Labs HVMTL reveal, claiming it to be low effort. You decide. (@CryptoDiamonds)

  • Why did CEO of Binance unfollow Elon Musk on Twitter? (@BreakingWhale)

  • Twitter user @voshy recently conducted a social experiment on Twitter called $GREED, asking users to submit nearly all of their information and sign a sketchy transaction in hopes for a meme coin airdrop. (@xsanyar)

  • A new claim against BlockFi says they possibly used customer funds to purchase insurance. (CT)

  • Gala Film is launching an exciting new NFT-infused Anime Series called Ghost of Ruin. Check out the details. (@GoGalaFilms)

  • The rise incoin trading recently has sent Uniswap users to a near all-time high. (@Delphi_Digital)

  • Boss Beautiesteams up with Mattel Creations to drop NFT Barbie project. (@BossBeauties) 

Ledger Controversy Explained 🔐

In a surprising (or perhaps perturbing) turn of events, Ledger, the celebrated hardware wallet manufacturer, is facing a massive dilemma.

💡 What happened?

The introduction of "Ledger Recover," an optional backup service for your Secret Recovery Phrase (SRP), the key to your digital assets.

Users are worried about Ledger's security, especially after they tweeted (then deleted) that the company was technically able to write firmware that could extract users’ private keys.

This tweet was later clarified and deleted by ledger

💡 So, where did the controversy start?

The controversy began on May 16th when the company introduced a new service called "Ledger Recover," which allows users to split their secret recovery phrase into three shards and store them with different data custody services. The deleted tweet above was in response to this new feature.

When you subscribe to "Ledger Recover," it encrypts and divides your SRP into three fragments stored separately in digital vaults.

These fragments are useless without identity verification and can only be restored on Ledger devices.

Here is Ledger’s official response on the matter:

💡 Ongoing drama

For now, it is crucial for the Ledger Team to provide clarifications on this matter.

We should also probably wait until Ledger's bad sentiment cold down.

Understanding what is happening with Ledger and their new service is significant for several reasons.

This is a classic case of "Trust Gone Sour," which is entirely understandable.

Ledger claims the service is secure, but it's like eating your favorite ice cream and discovering it changed its recipe halfway through.

You might still enjoy it, but you feel deceived, right?

The situation with Ledger is similar. Previously, it was believed that the Secure Element chip couldn't expose the seed … and this seems to not be the case.

We're left wondering what's in our hardware wallets.

This revelation raises concerns, shakes confidence, and tarnishes Ledger's image.

The entire issue is summed up in this tweet below:

Pudgy Penguins Added To Amazon 🛍️

Two days in a row talking about Pudgy Penguins??

Well when there’s big news, there’s big news. And this is definitely big news.

Here’s the big news:

  • Pudgy Penguins announces Pudgy Toys and Pudgy World

  • Over 7 different toys are available on Amazon to purchase with numerous variations of each toy. You can check out the collection here.

  • Each toy comes with a digital experience (this is where Pudgy World comes into play)

  • Each toy comes with a birth certificate holding unique traits

  • After the toy purchase, you can create your Forever Pudgy Penguin which effectively creates a new wallet, Soulbound NFT, and tradable traits

Make sure to watch CEO Luca Netz explain below:

In response, Pudgy Penguins’ floor has skyrocketed to 5 ETH after all these updates. This new journey to digital experiences via IRL toys will be pivotal for onboarding - especially since most won’t even know they are being onboarded to crypto in the process!

Definitely the thread of the week so far…

Sponsored Content: There is no sponsored content in this newsletter.

That's all for today's issue! Thanks for reading this far and also make sure to give our Twitter a follow daily for breaking NFT/web3 news! (@TheDropNFT)

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Disclaimer: The Drop DOES NOT provide financial advice. All content is for informational purposes only. The Drop is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any crypto-related asset is extremely risky and could result in significant capital losses.