This week in crypto news, Ledger encountered some pushback from the crypto community on its new hardware wallet update, Mattel unveiled its newest Fast & Furious NFT collection, and Texas continues to pass new crypto legislation. Enjoy this week’s stories!
Ledger Clarifies Controversial Update to its Hardware Wallets
Hardware wallet manufacturer Ledger encountered some public controversy as it unveiled a new feature called Ledger Recover, which allows users to back up and link their seed phrases to their identities through passports or ID cards. By using the service, a user’s private key is fragmented and stored with three different providers – Ledger, CoinCover, and EscrowTech. If a user were to ever lose or forget their seed phrase, they would be able to verify their identity through the service and regain their private key, giving them access to their crypto. However, this service met with much skepticism and criticism from the crypto community on Twitter. Some voiced concerns about identity theft leading to the loss of crypto and the cybersecurity vulnerabilities of the three providers – quoting that Ledger had been hacked previously in 2020, exposing customer information. Ledger has since published multiple clarifying statements, but public opinion is still mixed.
Mattel Announces Fast & Furious NFT Collection
Mattel, the company behind the iconic Hot Wheels brand, is set to release a new NFT collection in accordance with the release of Fast & Furious X, which hit cinemas over the weekend. The collection runs on the Flow blockchain, which is also home to popular collections like NBA Top Shot and CryptoKitties. Packs of cars cost $20, and will include multiple rarities ranging from Common to Super Rare. If collectors manage to collect all 19 cars, they qualify to receive an ultra-exclusive die-cast model of Suki’s Honda S2000 from the Fast & Furious movies. The Fast & Furious collection isn’t Mattel’s first time dabbling with NFTs. The company recently launched the Boss Beauties & Barbie NFT collection in a move to get more women involved in the ever-expanding Web3 landscape, and collaborated earlier in May to launch a Star Wars collection with Cryptoys.
Texas House of Representatives Votes to Require Proof of Reserves
Members of the Texas House of Representatives voted last week to approve Bill 1666, which requires cryptocurrency exchanges to provide proof of reserves at all times. The law now requires exchanges to maintain a balance of funds so that if all users were to withdraw their funds, the exchange could do so in a safe and timely manner. It also does not permit exchanges to use customer funds in any way other than for transactions, by requiring them to segregate accounts for customer and business funds. Lee Bratcher, president of the Texas Blockchain Council, says that the passing of the bill “increases transparency while continuing the light touch regulatory stance and pro-business environment that Texas has cultivated”. Texas appears to be one of the most crypto-forward states in terms of legislation and the crypto community is keen to watch which states follow their footsteps.
