Yuga Labs, the company behind the widly popular NFT collection Bored Ape Yacht Club (BAYC) is being sued in a proposed class action.
On 21st July 2022, law firm Scott + Scott issued a publication stating that Yuga Labs investors were inappropriately induced to buy their BAYC NFTs. In particular, Yuga Labs is accused of using celebrities to inflate the price of their NFTs and ApeCoin ($APE) token. Also, Yuga Labs had promoted that the NFT had growth prospects and opportunities for huge returns to unsuspecting investors.
The publication then goes on to state that after millions of dollars of BAYC NFTs were sold, Yuga Labs launched their Ape Coin ($APE) in order to further fleece investors. Finally, once it was discovered that value of the NFTs was solely based on celebrity promotion (and not actual utility), retail investors were left holding $APE tokens that had lost over 87% of their value since its peak on 28th April 2022.
The publication concludes with an invitation for any other investors of Yuga Labs to contact Scott + Scott to join in the class action. The class action intends to claim restitution for losses suffered as a result of purchasing Yuga Labs’ tokens and NFTs.
What is Bored Ape Yacht Club (BAYC)?
Bored Ape Yacht Club (BAYC) is a collection of unique non-fungible tokens (NFTs) depicting a cartoon ape. It is a limited collection of 10,000 bored ape NFTs on the Ethereum blockchain. (https://stratnewsglobal.com/) The BAYC NFT doubles as a Yacht Club membership card which according to their website grants exclusive members-only benefits. There are currently 6,457 BAYC owners and the most expensive BAYC ever sold was Bored Ape Yacht Club #8817 which was sold for US$3.4 million at the Sotheby’s Metaverse marketplace.
ApeCoin ($APE) is the ecosystem token for the BAYC project and BAYC owners are allocated 10,094 APE tokens per NFT. At its peak on 28th April 2022, each ApeCoin $APE was worth US$26.70. Currently, the price of $APE is down approximately 76% from this peak.
Hot and cold wallets are used to store your cryptocurrencies, specifically your private keys which grant you access to your crypto assets. They are therefore a crucial element of the cryptocurrency space.
The major difference between hot and cold wallets is that hot wallets are connected to the internet whilst cold wallets are not.
For those holding cryptocurrencies, the choice between cold and hot wallets depends on factors such as the amount of coins you hold, the frequency in which you trade etc.
Extra steps are required for trading. Save for the KeepKey which is partnered with ShapeShift exchange, users must first send their cryptocurrencies from their cold wallet to an exchange before they can trade. And when cryptocurrency prices fluctuate by the minute, this can have a profound effect on your gains.
Harder to use. They do require at least 10 minutes for initial set-up, and you will need to plug in your device every time before sending your cryptocurrencies. (www.speedclean.com)
Inconvenient. Even with the Ledger Nano X’s mobile feature allowing you to connect the device to your mobile phone via Bluetooth, it’s still not as convenient as a mobile wallet, which is simply an app on your phone.
Conclusion
Whilst there is a longer list of cons for cold wallets, they are still highly recommended on the basis of significantly improved safety of funds.
Numerous people have suffered from hacks and closures of exchanges. These victims have no way to get their funds back, or at best, it will take a very long time. For example, Mt. Gox exchange was hacked in 2011 and 2014. To date, none of its victims have gotten any of their stolen funds back.
Meanwhile, hot wallets are very convenient — if you leave your funds on exchanges, you can trade with the click of a button.
We recommend keeping small amounts of cryptocurrencies in hot wallets for day-to-day trading or spending only. Whilst the bulk of your cryptocurrencies should be kept in cold wallets. If you obtain any gains from trading, you should also consider how much you want to retain for further trading and immediately transfer the rest to cold wallets.
There are tens of thousands of cryptocurrencies out there, with over 1,000 new tokens launched between January and July of 2022. Over time, people in the crypto community have realized that there are many bogus projects in the blockchain space whose sole aim is to entice unsuspecting people and defraud them. This makes it compulsory for everyone to research blockchain projects before making financial commitments.
What Does DYOR Mean?
DYOR (Do Your Own Research) is a well-known acronym in the crypto and blockchain space. DYOR means that people are encouraged to conduct due diligence and gather all the necessary information on projects before depositing any funds, especially for new projects. Adequate research protects new and existing crypto enthusiasts from scams and projects with no real value. By “doing your own research,” members of the crypto community can find viable blockchain projects and avoid fraudulent or deceptive ones.
Why is DYOR Important?
DYOR is important to avoid losses, especially from scams or fraudulent actors. The evolution of decentralized finance (DeFi) and blockchain tech has made it easy for creators to sell the promise of a revolutionary product and attract cash from the general public. Since anyone with enough technical knowledge can create an asset on a blockchain, people no longer require intermediaries such as banks and brokerages before investing in the opportunities available within the crypto market. However, without governmental checks and regulations on these intermediaries, it also means that there is a high risk that the average investor will fall for a scam or fund a project with nefarious intentions.
Furthermore, since there are no centralized authorities in the DeFi space, people have no place or authority to report their grievances should the project turn out to be a scam. Fraudulent development teams know this, and exploit it by making promises they cannot deliver. In addition, transactions recorded on a blockchain are immutable. This design is a significant reason DYOR is important, since funds lost to scams or harmful projects are usually irretrievable.
How to Do Your Own Research (DYOR) in Crypto Projects
Here are some tips on how to DYOR before investing in crypto projects:
Find the project team and its Unique Selling Proposition (USP);
Evaluate the project roadmap;
Check the project’s social media reputation and presence;
Research the project’s source of funds
Read the project’s whitepaper
Find Third-Party Audit Reports
Find the Project Team and its Unique Selling Proposition (USP)
People looking to invest or deposit funds must first find information about the project’s motives, purpose, and development team. The data could include the project’s past performance and detailed use cases of featured products. If a project team is anonymous, it should set off red flags in your head, as you should be wondering why they aren’t willing to put their name behind a project if it is reputable. Also, what is the project trying to achieve? Consider if it is actually something that there is likely a market for, and whether other competitors have attempted the same idea in the past and their results?
Evaluate the Project Roadmap
Reading and understanding a project’s roadmap, which provides a strategic overview of objectives, milestones, deliverables, and resources, is an effective way to DYOR. You should also evaluate if the roadmap is feasible – this relates to the above research on the team and their background. A fake or deceptive crypto project may publish a roadmap that promises all kinds of products or features in a short time. These projects sometimes do this to excite new backers into believing the project is viable in the long run and things are moving along quickly. However, the roadmap may be too good to be true. If a project makes promises like partnerships, new products, plans to raise a large sum of money, and full government approval all within a short time, buyers should be wary.
Check the Project’s Social Media Reputation and Presence
Reputable blockchain projects usually have a verifiable social media presence and reputation. Checking the project’s reputation on major social media platforms such as Facebook, Telegram, Reddit, and Twitter gives insight into people’s thoughts about the project. See how other users are interacting with the community. Also, see if there are any questions or grievances concerning the project, and whether the team is immediately on hand to address them.
Research the Project’s Source of Funds
Before making financial commitments to a project, it is important to determine whether a single individual or an established firm backs the project with capital and other resources. Prospective investors should also research previous projects backed by these sponsors to see if they were successful. Additionally, these sponsors should have a good reputation in the crypto community. This information can be located in the project’s whitepaper.
Read the Project’s Whitepaper
All crypto projects should have at least a whitepaper that documents information and technical aspects of the project. Whitepapers contain critical information about a project’s development process, potential opportunities, and utility.
Find Third-Party Audit Reports
Many auditors, such as Certik, Hacken and Quantstamp review the code of blockchain projects before launch to ensure their security. These audits involve double-checking the code and testing it for vulnerabilities, which results in the funds within the application being much safer than a non-audited smart contract. Looking up the audit report of projects before investing is a sure way to build confidence in a project. However, people should be aware that a positive report does not mean that the project is completely safe, as there are instances where malicious code was added after the report was released.
People researching crypto and blockchain projects should use multiple tools, common tools include CoinGecko, CoinMarketCap, Investopedia and social media.
CoinGecko
CoinGecko is a popular market research source for blockchain projects. The platform provides detailed information on market caps, prices, and daily trading volumes of various crypto assets. In addition to being a credible source of crypto information, CoinGecko also provides crypto-focused podcasts, industry commentary, and daily newsletters. When going into individual asset pages, you can also find the token’s website and social channels, allowing you to continue your due diligence.
CoinMarketCap
CoinMarketCap is the leading platform for cryptocurrency market information and research. The platform provides market information on nearly all the crypto assets available. CoinMarketCap also ranks crypto assets and projects in real-time, using features like market capitalization or 24-hour trading volume to sort projects in order. Like with CoinGecko, make sure to check the individual asset pages for more information on a specific cryptocurrency.
Investopedia
Investopedia is a leading online resource in the finance space. It is a repository that explains related terms and contains news and general financial information. Investopedia explains many complex blockchain concepts in layman’s terms, making it an ideal platform for newcomers in the finance and crypto space.
Social Media
It is almost essential to sample public opinion about a project before spending money. Social media platforms like Facebook, Twitter, Telegram and Reddit contain raw and undiluted information from members of the crypto community who may have in-depth details about the project.
Although the information posted on social media may be unverified, these platforms can still be an excellent way to get much-needed information about projects. Posts may be from people who have lost money, made money, or those who noticed specifics that they considered to be red flags. However with everything on social media, always confirm that the statements being made are legitimate before you take them as truth.
Conclusion
DYOR is crucial for investors in the cryptocurrency and blockchain space. The absence of easy-to-understand information and lack of regulation somewhat makes scams more likely in the crypto space than in traditional financial markets, so never overlook the importance of research and verification. Doing the proper research before getting monetarily involved in any project is a concept that has more relevance in the blockchain sector than in many other industries because it is a disruptive and highly volatile sector.
This setup guide helps you set up your new Ledger Nano S hardware wallet. It will teach you how to backup your wallet and install apps so you can access your cryptocurrencies with it. You can read our full Ledger Nano S review here.
The wallet is one of the most advanced cryptocurrency wallets in the market today. It supports over 1800 cryptocurrencies. The Ledger Nano S also offers better support, compact design, mobility, and security for your crypto-assets. The device retails for USD 59 or you can save 27% when buying a family pack of 3 for USD 129. Important to note that Ledger plans on discontinuing the Nano S sometime during 2022 once they’ve sold the last 10,000 Final Edition units.
Ledger Nano S Unboxing
You can also follow our step-by-step video setup guide here.
Ledger Nano S – Setup and Guide
The first step when you receive your hardware from the store is to check if the box is correctly sealed. If the box is not sealed correctly, return it to the store because there is a high chance that the wallet has been tampered with.
After verifying that the seal is intact then unbox your device and confirm that all the contents are there. The contents in the box should include:
Ledger Nano S device;
Blank sheet to write down your recovery phrase;
USB cable to allow you to connect it to the computer;
Setup guide manual that contains instructions on how to install and use your device; and
Keyring and lanyard to take your device on the go.
Inside the Ledger Nano S box
Verify that the 24-word recovery phrase card is blank. This 24-word recovery phrase allows access to your private and public key details in case your login details have been lost. If it is already pre-determined, it means that your device has been tampered with.
Setting up the Ledger Nano S
Connect the device to your computer using the USB cable included.
A welcome screen immediately flashes up your device and prompts you to press the two buttons on top to begin.
It will then ask “Configure as a new device?”. Click: – “x” to restore an old device using your recovery phrase; or – “✓” to set up a new device.
Setting the PIN Code and Recovery Phrase
Setting the PIN Code
The device will ask you to set a new PIN code. In future, this is what you will enter to access your device.
Input your chosen 4 to 8 digit PIN code by pressing the buttons on either side to choose the digit, then pressing both buttons together to confirm. Re-enter your PIN code to confirm and conclude the PIN code setup process.
Setting the Recovery Phrase
You now need to set a recovery phrase that you will use to restore your wallet on another physical device.
Press the 2 buttons of your Ledger Nano S device simultaneously to start.
The device will start displaying the 24 words that make up your recovery phrase one by one. Press both buttons simultaneously to move onto the next word. Write them down in order on the blank recovery sheet provided.
DO NOT take a photo of your recovery words or write them down on your computer- keep it locked away. This is because anyone with your recovery phrase will be able to restore your account on another Ledger device and steal your funds.
Afterwards, the device will prompt you to confirm your 24-word recovery phrase by asking you to input some of the words. Do this to complete the recovery phrase setup.
Your device is now set up and ready to use!
Ledger Live Application Setup
Keep your device connected to your computer. You need to download and install the Ledger Live app to your computer.
Open the Ledger Live app and select: “Initialize as new device.” Click “Ledger Nano S” and follow the instructions that check whether you have installed your hardware wallet correctly. You will then be asked to setup a Ledger Live password.
To use the device with a particular cryptocurrency, you will need to download the corresponding app on Ledger Live.
Afterwards, the Ledger Live app will ask you to install apps or add accounts. Select “Open Manager” which will allow you to install or uninstall apps.
For example, to use Bitcoin with your device, select “Open Manager”, find “Bitcoin” in the app catalog and simply click “install”. You will now see the Bitcoin app on your device.
The Ledger Nano S only supports between 3 to 11 apps after its 1.6 firmware upgrade. So if you want to use your device with more than 3 cryptocurrencies, you might find it difficult to fit all of the different apps onto your device in which case you will have to uninstall some apps to make room.
You will not lose your cryptocurrencies if you uninstall the corresponding app. But of course installing/uninstalling apps to use your device is seriously troublesome.
Your Ledger Nano S is now ready to use!
Ledger Nano S setup guide: Conclusion
The Ledger Nano S is relatively easy to set up. The instructions are very clear and intuitive.
Again, ensure that your PIN code and recovery phrase is kept offline and secure. Others can access your funds using your PIN code or restoring your device using the recovery phrase.
The Ledger Nano S is limited to between 3 and 11 apps, depending on the individual app sizes for specific coins. If you have or intend to use more than that amount of cryptocurrencies regularly, you may have to use multiple devices. Or consider getting a Ledger Nano X? Check out our Ledger Nano X review to learn more.
Bifrost Finance ($BNC) is a Polkadot-based parachain designed to enhance cross-chain liquidity and provide users with staking service. Bifrost pays vTokens (Staking Derivatives Voucher Tokens) to users who help with liquidity by depositing PoS tokens on the platform. Users can convert a Proof-of-Stake (PoS) token into a vToken (such as ETH to vETH) for cross-chain functionality.
Many blockchain networks in the crypto space offer various DeFi services supported by unique native tokens. Although the global DeFi and blockchain sectors are growing, most operate individually and have little to no interoperability with each other. This lack of cohesion between chains created a void that only cross-chain projects could fill.
Cross-chain infrastructure solutions are slowly gaining popularity. However, these projects still face problems with liquidity across networks and cross-chain reward mechanisms for staked assets. Bifrost Finance aims to address these blockchain limitations, allowing the easy flow of assets and user incentives between blockchain networks.
Ecosystem, Technology, and Utility
The Bifrost project lets users earn incentives for staking assets and providing cross-chain liquidity. The project functions as an intermediary protocol between decentralized applications, and supports these applications via PoS services and liquidity staking.
Usually, staking crypto assets require users to lock their tokens in smart contracts for a specified period. Staked tokens are generally not accessible until the lock duration expires. However, Bifrost uses its native vTokens to solve this problem through liquid staking. Liquid staking on the Bifrost platform lets users stake crypto assets and receive vTokens in exchange instead of waiting for the specified staking period to expire. Stakers can then use the vTokens to access and fund Bifrost-compatible networks like Kusama and Polkadot. Bifrost Finance uses Polkadot’s GRANDPA consensus algorithm for staking and other functions.
Components of the Bifrost Finance Network
The Bifrost Finance network includes the following components:
Cross-chain users, including vToken holders, and BNC miners
Voters, who are BNC holders, capable of voting for the governance and management of the Bifrost platform. Voters receive rewards for their service.
Node validators who vote on valid transactions. Validators also receive a percentage of the total platform’s rewards.
Stake proxy nodes nominated to support PoS chains of other networks associated with Bifrost. These nodes connect with various mining pools, liquidity pools, DApps, and wallets, making it easier for the staking node to interact with other DeFi services and protocols.
A vToken DEX that provides liquidity for vToken. Users can also stake or unstake their tokens on this exchange.
Community Developers who build applications like wallets and DApps, developing new features on the Bifrost platform.
Is the Bifrost Finance Network Safe?
The Bifrost network is a Polkadot parachain project. The network provides security by leveraging Polkadot’s existing infrastructure instead of providing its own. Polkadot also helps provide secure communication between networks with the help of its relay chain, without any additional trust mechanisms through a concept known as “shared security.”
Bifrost Native Coin ($BNC) Utility
The BNC token is essential for the governance and operation of the Bifrost network. Some of its main use cases include:
Trading Fees
Users performing Bifrost network transactions, including transfers and staking, must pay transaction fees. Bifrost has a flexible fee model that supports multiple asset payment fees such as BNC, DOT, vDOT, KSM, and vKSM. The platform converts these fees into BNC before storing them in the treasury to promote network growth and maintenance.
Collateral
Participating nodes have to stake BNC to guarantee good conduct on the Bifrost network. Based on node performance, required collateral may increase or reduce.
Administration
To build and establish community governance, BNC holders can recommend and vote on network enhancements, with each vote corresponding to the amount of BNC tokens held.
Bifrost ($BNC) Unique Features?
Bifrost provides PoS networks with much-need liquidity by letting users convert assets to vTokens with the option to receive passive income from staked tokens.
vTokens can help optimize transaction speed and improve transaction efficiency across various protocols and platforms, including decentralized applications (DApps), decentralized exchanges, and centralized exchanges.
Bifrost Finance guarantees genuine democratic governance by ensuring all processes on its parachain are transparent.
Conclusion
Cross-chain liquidity allows users to use and enjoy various blockchain protocols and maximize the many opportunities in the DeFi space. By providing quick and cost-effective cross-chain liquidity, Bifrost Finance has made a significant leap in DeFi advancement.
NFTs have become one of the most exciting trends in the blockchain and cryptocurrency space. With many existing projects and more in the works, crypto enthusiasts now consider NFTs as potentially rewarding and an attractive asset. These specialized assets have generated a lot of media hype, speculation, and commendable value for the greater crypto and blockchain ecosystem.
However, many people are still unaware of the specifics which make NFTs work such as minting, applications, and their general significance towards the crypto and traditional sectors. People also don’t know what to make of the trend, and whether or not they should participate in the hype. As popular as they are, NFTs suffer from the effects of many widespread myths and misconceptions, making these assets some of the most misunderstood in the finance and blockchain sector.
What are NFTs?
NFTs (non-fungible tokens) are digital assets with uniquely verifiable qualities contained in their metadata. These tokens function as a popular and effective way to represent traditional or blockchain assets because they are non-fungible, meaning they cannot be freely interchanged in a one-to-one manner, duplicated, or forged. Once created, NFTs are permanently etched on the blockchain’s public ledger and are visible by all nodes on the blockchain. The unique nature of NFTs affords them significant utility across various sectors.
While the principle behind NFTs has real-world applications, these assets are still in their infancy. Many people, including crypto enthusiasts, are still only aware of the myths and misconceptions created by mainstream media and do not fully understand these assets which can have huge potential. Here are some of the most widespread myths about NFTs and the truths behind them.
Click here for our in-depth explainer on what are NFTs.
Myth #1 – NFTs Are a Kind of Cryptocurrency
The biggest misconception is that NFTs are a kind of cryptocurrency. Although they are both developed on blockchains, the critical difference is their fungibility. Cryptocurrencies are fungible assets traded only by an asset with the same value. For example, Ethereum’s Ether (ETH) token is only tradable if exchanged for other ETH or another cryptocurrency with the same exact value. On the other hand, each NFT has a unique value and cannot be replaced with another. One Ether is always worth the same as any other Ether, but the same cannot be said about NFTs, making them a digital asset, not a currency.
Myth #2 – NFTs Are Harmful to the Environment
Since creators mint NFTs on energy-intensive blockchains, many people think they are harmful to the environment. However, this is not the case. People are now using the more energy-efficient Proof-of-Stake (PoS) blockchain protocol instead of the Proof-of-Work (PoW) protocol, which is more energy-intensive.
Click here to learn more about Proof of Work vs Proof of Stake.
Myth #3 – NFTs Don’t Have Value
Another common misconception about NFTs is that they do not have any value. On the contrary, am NFT derives true and inherent value from the underlying blockchain technology that enables the ownership, transparency, and security of digital assets.
The utility of NFTs transcends digital artwork, avatars, and collectibles. For example, certain NFTs offer holders various uses and benefits ranging from VIP concert passes to private dinner reservations. Additionally, NFTs are applicable in the real estate sector to transfer land deeds or verify ownership.
Myth #4 – NFTs Are Easily Copied and Forged
A common issue with digital collectibles is validating their authenticity and rarity, mainly to prevent the sale of counterfeit or pirated items. This is a problem that blockchain technology quickly solves.
A blockchain maintains a series of public transactions across different computers or nodes. Each node “witnesses” all transactions to ensure that they are all 100% authentic. With NFTs, the blockchain creates a clear chain of ownership making collectors confident that their NFT is the one-and-only “original,” also ensuring that buyers can verify authenticity before exchanging money.
Myth #5 – NFTs Encourage Scams and Money Laundering
Many still commonly believe that blockchain assets are for criminals and tax defaulters. However, cash is still much more utilized for nefarious purposes and crime-driven than cryptocurrencies and NFTs. All transactions on the blockchain are completely transparent and easily trackable if there is a need to detect fraudulent activity. Furthermore, in some cases, it is also possible to recover stolen funds from scams or money laundering.
Myth #6 – Buying an NFT Means Owning the Intellectual Property
This myth is more of a technical misconception. Owning an NFT does not automatically give ownership of the underlying asset or its intellectual property rights. Unless otherwise stated, ownership of the intellectual property stays with the creator of the NFT. Even after the purchase, buyers or collectors do not have the right to use the NFT outside the scope outlined by the creator. Think of it as a collectable book or movie; just because you purchase it doesn’t mean you have the right to reproduce or monetize the intellectual property.
Myth #7 – NFTs Are Just a Fad
Like the internet, many people thought NFTs would not catch on or only find applications for illicit activity. Some also believe that these tokens are just hype and will suddenly disappear, leaving many people holding worthless assets. However, given the many possible use cases, NFTs are unlikely to disappear.
We can see that NFTs are not dead or just a fad from the launch of video game retailer GameStop’s NFT marketplace. GameStop launched its NFT marketplace on 12th July 2022, ahead of its initial anticipated release after hinting at this for over a year. GameStop has in May 2022 already released its digital asset wallet for users to store, send and receive cryptocurrencies and NFTs in anticipation for this marketplace launch.
The launch of GameStop’s NFT marketplace also appears to be a success, with trade volumes exceeding US$1mil (over 1,028 ETH) in 24 hours. Commentators on Twitter also suggest that GameStop’s launch was even more successful than that of the Coinbase NFT marketplace, since GameStop’s trade volume in 24 hours was equivalent to 60% of Coinbase NFT marketplace’s entire lifetime sales.
Conclusion: NFT Myths?
NFTs are here to stay and are slowly gaining massive traction across the crypto space. Although popularity is on the rise as creators are continuously minting new ones every day, crypto enthusiasts worldwide still need to stay informed about utility to better understand the technology, how it works, and how creators can sustain the NFT market well into the future.
Enjin wallet is a secure and easy to use mobile cryptocurrency wallet (iOS/Android). It’s extremely simple to use and contains advanced features such as Dapp Browser, QR code airdrops, Cryptocurrency Exchanges and Enjin’s own NFT marketplace integration. It’s the most secure mobile wallet we’ve tested with a two-layer security encryption and secure keyboard. Enjin wallet supports a wide range of cryptocurrencies such as Bitcoin, Ethereum (all ERC-20 and ERC-1155 Tokens), Binance Chain, Litecoin, Polkadot and Kusama. Enjin wallet is created as a companion to the Enjin Platform.
Best Software Wallet Award
Enjin Wallet is our Gold Award winner in the Free / Software wallet category. We were impressed by the wallet’s security features such as custom memory sweeps and double encryption. Enjin wallet is our top recommendation for any beginner who wants to keep their cryptocurrencies safe.
Is Enjin Wallet Safe to Use?
Security is the biggest concern for wallets as hackers are known to attack various wallets and attempt to steal funds. Enjin wallet offers the best in class security for mobile wallets.
Two-layer encryption: Hardware AES and software encryption is employed on the lower and application layer respectively
Secure keyboard: The protected keyboard bars keyloggers and/or data sniffers from tapping into your mobile device to steal data. It can also be randomized to increase security.
Screenshot blocking and Random Access Memory (RAM) encryption: The wallet’s operating system level restricts screenshots and video recording. On the memory level, transactions are conducted on a secure RAM.
Custom libraries: Enjin Wallet features custom libraries that remove the private keys from the device memory after use – significantly reducing the attack service.
Protection processor flaws: special code is put in place to deal with flaws in ARM processors.
Security Audited: ORU security team found no issues that could be used to compromise the wallet or the cryptographic keys stored in the system (full security report here)
Samsung Blockchain Keystore support: Enjin supports the Samsung Blockchain Keystore for private key protection under Samsung’s military grade security Knox.
Mobile wallets are classified as a “Hot Wallet” – meaning this wallet is connected to the internet. The Enjin team has devised special counter-measures to deal with hackers attempting to steal cryptocurrencies. All private keys are double encrypted, so even if hackers stole the file it cannot be decrypted. On top of this, the special designed Enjin keyboard deals with keyloggers – making sure that the on-device decryption process is safe. Lastly Enjin used custom libraries to wipe the private key from device memory once the transaction is sent – unlike other mobile wallets.
We added many security features that regular wallets don’t have. Enjin Wallet cannot be Keylogged and not affected by CPU flaws like Meltdown and Specture.
Hot wallets are generally considered less safe due to possible device based vulnerabilities (CPU or Memory flaws) which could compromise the security of the mobile phone. That being said, Enjin wallet’s can be considered to be the best out of all mobile wallets. For large amounts of cryptocurrency storage, we recommend the use of cold wallets like the Ledger Nano X.
We found the security of Enjin Wallet to be the best among mobile wallets, with external security audits confirming our viewpoint. We give it the highest security rating of 4/5 – the highest possible rating for “hot wallets“.
Security: 4/5
What Cryptocurrencies does Enjin Wallet Support?
The Enjin wallet supports the storage of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Binance Coin (BNB), Binance Chain tokens (BEP2), Polkadot (DOT), Kusama (KSM) and Ethereum-based tokens. For Ethereum-based tokens, Enjin supports those created using the ERC20 and ERC1155 standards. Select ERC-721 collectible tokens are also supported, namely for God’s Unchained, CryptoKitties, Blockchain Cuties and Axe Infinity.
The ERC1155 tokens fit into the Enjin ecosystem as these tokens can represent in-game assets. This fits perfectly into Enjin’s game development ecosystem for blockchain-based games.
The wallet allows users to sort, view, and show virtual currency balances in your local currency. Enjin’s partners Bancor, Kyber, and Changelly allow you to easily swap tokens.
Multi-currency Support: 4/5
Enjin Wallet Cryptocurrecy Exchange Interface
Design and interface
The Enjin wallet sports a clean and intuitive design. The wallet also allows you to easily switch from viewing your balances in cryptocurrency or the equivalent in your local fiat currency. This is extremely helpful in allowing you to know how much your portfolio is worth with a simple glance.
What is also helpful is the ability to easily create additional wallets. So say if you send or receive cryptocurrencies for different purposes, you can create a wallet for each of them (kind of like having partitions in your actual physical wallet) which makes managing your finances very convenient and easy to trace.
One slight gripe I have about the Enjin wallet is that when you look at the individual cryptocurrency balances in your wallet, there is a discrepancy in the balance shown at the top and the bottom (which is the correct balance). Though this does not affect your usage of the wallet, you just need to know and accept that the bug is there.
The balances shown are inconsistent, the one circled in red is actually correct
Despite this, Enjin wallet makes up for it with the fact that features the cleanest interface out there and additional functions not seen in any other software wallet. Because as we will see below, the Enjin wallet is more than a really good software wallet. The wallet is only one small part of Enjin’s whole gaming ecosystem. Rather, the wallet opens up additional features such as a QR code scanner, wallet for in-game collectible items and marketplace for you to trade these collectibles.
Software design: 5/5 Ease of use: 5/5
Final thoughts- my experiences with Enjin wallet
I personally store small amounts of crypto on the Enjin Wallet so I can trade, or pay or receive crypto on the go. It has an easy to understand interface with a wide range of supported coins. So I have no hesitation to use it as my primary wallet. I had friends who were new to cryptocurrency and were completely overwhelmed when hearing other people talk about hardware wallets, exchanges and crazy hacks. I showed them my Enjin Wallet and it only took them less than 30 minutes to install and master. My guess is that without Enjin wallet’s simple and easy to understand design, they would have not bothered with cryptocurrencies at all. 6 months on, they are now trading cryptocurrencies regularly.
Enjin Wallet Ecosystem
Collectable Token Support
Enjin has created its own ERC-1155 digital token standard which can be used to create both fungible (currencies) and non-fungible (NFT) (digital cards, pets and in-game skins) assets on the Ethereum Network.
With the Enjin wallet, you can receive, send or melt these NFTs. The NFTs can be collectable items or in-game assets.
You can use the wallet to trade NFTs with your friends and there are Telegram forums dedicated to buying and trading collectibles!
Boxmining NFT collectable items
To learn more about all the games and the Enjin Multiverse, check out their website. Though a fantastic feature, the Enjin Mintshop, where you could mint your own NFTs was unfortunately deprecated upon launching the public mainnet of the Enjin Platform in 2020.
Boxmining collectable items are frequently given out as a way to say “Thank you!!” to our fans. Subscribe to Boxmining’s YouTube channel and click the notification bell so you don’t miss out!
Scan for QR Airdrops (Enjin Beam)
Enjin Beam QR giveaway
These giveaways could be found on various websites, games, and promotions on the Boxmining Channel. The Enjin Beams can take two forms: Airbeam, which sends all users the same collectible, or Lootbeam, which includes a variety of assets of varying rarities, so each user is likely to get different combinations of these loot assets. Read more about Enjin Beam here.
Enjin Wallet Marketplace
Digital Collectible items (ERC-1155 tokens) can be directly sold on the Enjin marketplace using the built in features of the Enjin Wallet. This first of a kind feature allows gamers to trade items safely without any risk by using ethereum smart contracts. Items can be listed on the marketplace by using the “sell” feature in the Collectibles tab. The procedure is a 1 step process where seller directly inputs a selling price and confirms by executing the contract on Ethereum (paying gas in the process). The item will be directly listed on the Enjin Marketplace for public purchase.
Exchange Function
Enjin’s partners Changelly, Bancor, and Kyber allow users to easily swap between different cryptocurrencies. All you need to do is type in the amount and type of cryptocurrency you want to convert and the cryptocurrency you want to convert it to. The amount you will receive and the details of the transaction will be automatically calculated and displayed you. If more than 1 exchange offers the type of conversion you want, the information will be displayed for you to compare and choose the one that’s best for you. Then all you need to do is press “convert” and it’s done!
Marketplace
The Enjin wallet also allows you to directly access their Marketplace, where you can browse and buy various NFTs. Payment can be made directly from your Enjin wallet.
Dapp Browser
Enjin Dapp Browser Support
Enjin wallet includes one of the best Decentralized App Browser we’ve ever seen. The clean user interface displaces the various Exchanges, Financial, Games and Social Media Services.
Open up the app, select “crypto wallet” and then “create wallet“.
Select the password you want for your wallet. When setting up your passwords and later backing up your wallet, make sure you are in a secure environment where you are not being recorded. Thieves will be able to access your wallet if they obtain this information.
Then, select which cryptocurrencies you would want to hold in your wallet. You can always add or remove more types of cryptocurrencies later. Then press “create wallet“.
The app will then ask if you want to backup your wallet. This is so that you can reinstate your wallet at a later date, for example when you change your phone and need to reinstall everything. So it’s highly recommended to do this step, even though it may seem tedious.
The backup is a 12 word recovery phrase that you will need to correctly re-enter to reinstate your wallet. So keep these 12 words recorded and stored in a safe place. See here for some ideas and tips on how to keep your recovery phrase safe.
You will then be asked to verify your passphrase by entering 2 of your 12 word recovery phrase at random. You will then be taken to the select coins menu where you have another chance to select the coins you want to hold in your wallet. Again, you can choose to add other coins later. If you are happy with the list of coins selected, click “create wallet“. The setup is then completed and you will then be taken to the main page of your wallet.
How to Send and Receive Cryptocurrency Using Enjin Wallet
Sending Cryptocurrency
On the main page of your wallet, select the cryptocurrency you wish to send.
For this demo I will be sending Bitcoin, so I selected “BTC”.
Then on the following page (second picture below), select “send“. On this page you can also see your transaction history for this cryptocurrency. Note: the balance shown on the top left hand side of the second picture below is sometimes inaccurate. This is a bug in the app which hasn’t been fixed yet. However this is only a display issue and does not affect your actual wallet balance which is displayed in the larger font.
On the send page (third picture below), I usually select “Advanced mode” which allows you to type in the number of satoshis per byte you wish to send your cryptocurrency with. The more satoshis per byte, the faster the send and of course the higher the transaction fee.
On the send page you have 3 options for inputting the receiver’s address, either: (a) type in the address; (b) paste the address; or (c) scan the recipient’s QR code address.
For the demo I will scan the recipient’s QR code address, so I selected the QR code icon on the top right hand corner, which opens up my phone’s camera, as shown in the second picture below. There I can either choose a QR code from my photo gallery, or in this case, I scanned the QR code of the recipient.
Once you’ve scanned the recipient’s QR code you will be brought back to the send page (first picture below) with the recipient’s address filled in. In the secondentry you can enter in the amount you wish to send or simply click “ALL” to send the entire balance in your wallet. And in the third entry the number of Satoshis per byte, which as mentioned will determine how fast your transaction will be sent.
To see how many satoshis per byte I would want to send my cryptocurrency with I go on the website whatthefee. This website gives an estimate of how fast my transaction will go through at any given time (second picture below). On the table, the figures in black represent the percentage likelihood a transaction will take a given length of time. The figures in the middle represent the number of satoshis per byte. So for example, the green shaded entry on the top right hand corner means that with 20.1 satoshis per byte, there would be a 95% chance your transaction will go through in 0.5 hours. The higher the satoshis per byte, the faster my transaction and consequently the higher the transaction fee.
Once you’ve entered in the recipient’s address, send amount and satoshis per byte, click “next step“. This will bring you to the confirm transaction page (third picture above). Here you can double check that the details are correct, if it is, click “send now“. Now you are all done!
Receiving Cryptocurrency
On the main page of your wallet, select the cryptocurrency you wish to receive. If the cryptocurrency you want to receive is not shown, click the “+” button on the top right hand corner, select the coin you want to receive and then click “update coin list”.
For this demo I will be receiving Bitcoin, so I selected “BTC”. Then on the following page, select “receive“. Your Bitcoin address will then be displayed in the form of a string of letters and numbers, or a QR code representing your address. You can then either (a) copy the address and give it to whoever will be sending your cryptocurrencies; or (b) have them scan your QR code address.
Note: the balance shown on the top left of the second picture below is sometimes inaccurate. This is a bug in the app which hasn’t been fixed yet. However this is only a display issue and does not affect your actual wallet balance which is displayed in the larger font.
When the cryptocurrency is successfully sent to your wallet, the balance on your main page will be updated. Tip: You can select the small circular arrows next to “value” to display the balance in your local currency or the cryptocurrency itself.
Congratulations! You are all set!
Successfully set up your Enjin wallet? Learned how to send and receive crypto? Now it’s time to get started with trading Bitcoin and other cryptocurrencies! Check out my course created in collaboration with Jeff Kirdeikis of Uptrennd- Bitcademy: Learn, Invest & Trade Bitcoin – In Under an Hour
Enjin Wallet 2.0
Enjin is also currently enrolling users in testing its Enjin Wallet 2.0 Beta, although it’s only available for Android users. This new wallet will be a completely re-written Enjin Wallet from the ground up, including all of the code to ensure better performance, stability and reliability, as well as a completely new UX and design.
If you want to participate in testing the Enjin Wallet 2.0 Beta, you can sign up here!
FAQs
How to download the Enjin Wallet?
The wallet is available for use on mobile devices powered by iOS or Android operating systems. Download the Enjin wallet on the Apple App Store or Google Play Store.
Can I import cryptocurrencies from other wallets to the Enjin wallet?
The Enjin wallet allows coins to be imported from other cryptocurrency wallets. Examples of cryptocurrency wallets are: Bread, Eidoo, Exodus, Coinomi, MetaMask, Trezor Model T, Ledger Nano S, Ledger Nano X and Jaxx.
The wallet uses an extremely interactive and secure user interface. This eliminates the confusion of copying and pasting addresses.
How does Enjin bring NFTs to Video Games?
One of the key features unique to the Enjin Wallet is the ability to bind the wallet to various video games. So together with the ability to send and receive, scan QR codes and their Marketplace, players can obtain NFT tokens representing various in-game items and import them into different video games. This allows players to truly own digital assets – the items are not stored centrally on databases but on the Ethereum blockchain instead. (https://www.hanakaimaui.com/)
Trezor One and the Trezor Model T (Model T) are cryptocurrency hardware wallets produced by Satoshi Labs in 2014 and 2018 respectively. Comparing the two, Trezor One is good for budget-conscious people or those who don’t need a diverse portfolio. Those willing to pay a lot more primarily for better displays can consider the Trezor Model T.
In this article, we compare the 2 models and give our verdict on which model would suit you best.
Sophisticated traders who trade or are interested in trading numerous different altcoins. For example the Trezor One does not support Ripple (XRP), Cardano (ADA), Solana (SOL) and a number of later ERC-20 coins.
Users who want clear and vivid displays: The Model T has an almost 2x larger colour touch screen.
Hardware wallets are generally impossible to hack. Most vulnerabilities are rather from users who accidentally disclose their passwords and recovery phrases. However, in 2020 a serious hardware vulnerability was found by Kraken Security Labs for both of the devices that allows a hacker to crack the PIN code within 15 minutes of physically having the device. This is an inherent flaw contained within the Trezor’s microcontroller that cannot (and has not) be fixed with a firmware upgrade.
Trezor have since released several firmware updates and recommendations that help minimize this risk. One such recommendation was to protect the wallet with a password in addition to a PIN, that way this vulnerability is completely overcome.
Both models have similar security features starting from a protective seal on its box to alert you of any tampering. Both models allow you to set: 1. PIN code (up to 50 digits) to access your device, 2. Passphrase for accessing specific sub-wallets; and 3. Recovery phrase to restore your device.
The major distinction between the 2 models is that for the Trezor One, the PIN code, passphrase and recovery phrases are all inputted on your computer or mobile. Whereas you input on the device itself for the Model T.
Multicurrency Support
This is one area where you can clearly see the different times the wallets were released.
A sample of the different coins supported by the 2 devices
Trezor One
Can handle fewer coins but supports most major coins like Bitcoin, Ethereum, Litecoin and many others. However, subsequent coins such as Cardano, Monero, Ripple, and Tezos are not supported. Since firmware upgrade 1.5, the wallet supports every ERC-20 token.
Trezor Model T
It is capable of supporting these new coins. For this reason, cryptocurrency investors looking to trade more types of newer coins generally should use it.
Similar to Trezor One, Model T does not support Cardano, Solana, Ripple and others, but does support Tezos and ERC-20 tokens.
Both devices have a plastic exterior which make them less susceptible to damage due to drops. This I can certainly attest to since I’ve accidentally swept the device off my desk and onto the floor numerous times- and it still works fine.
Trezor One
It is a smaller device at 2.36 x 1.18 x 0.27 inches (60x30x6mm), and weighing 0.42oz (12 grams). It has a 128 x 64 pixel monochrome display. With 2 buttons below the screen for operating the device.
The device uses a USB micro-B connection to connect to your computer.
Trezor Model T
Slightly larger and heavier at 2.52in x 1.54in x 0.39in (64mm x 39mm x 10mm) and weighing 0.77 oz (22 grams). The display is substantially improved with at a 240 x 240 pixels coloured LCD touchscreen.
The device uses the newer and more durable USB Type-C connection.
Verdict
Both devices offer exceptional security for your digital asset needs. The Model T obviously has the edge by virtue of being newer and its features and greater currency support shows for it.
The clear standout new feature of the Model T is its larger colour touch-screen display. Having tried both devices myself I still prefer the physical buttons on the Trezor One. This is because whilst the Model T has a larger screen is still not large enough to easily press accurately.
However I do appreciate not having to squint to read the addresses displayed on the Model T’s screen.
However, you do have to pay top dollar for the Model T. At US$170, it costs 46% more than the Model One. Does it accordingly offer 46% more features? Honestly, no- and that is accounting for the additional cryptocurrency support- which I consider the most important upgrade.
For investors with diverse crypto holdings, the Model T is definitely an obvious choice. It is newer and supports hundreds more coins. Alternatively for casual users or those with a limited budget, Trezor One still does what it needs to do in terms of securing your cryptocurrencies.
Trezor One was launched on 29 July 2014 and was the first-ever cryptocurrency hardware wallet. This wallet brought an unprecedented level of security to the burgeoning cryptocurrency field. As such, it paved the way for subsequent upgrades in this field.
You can also check out my video unboxing and guide below.
Key Features
Clear screen – The Trezor One features a clear monochrome screen. Trezor uniquely allows you to customise your home screen.
Integrated exchange support– The device has integrated exchange support so users can trade seamlessly.
Proven security– Trezor One, being one of the original wallets has a track record of security.
Security Features
The security features of the Trezor Model One begin in its packaging. The device is inside a completely sealed box together with a hologram sticker. Be sure to only buy your device from the official website. If your box seems to have been tampered with, DO NOT use it and contact their customer support immediately.
Similar to the newer Trezor Model T, passwords on the device are individually locked with the Trezor Password Manager using a user’s digital keys. The device also functions as a U2F hardware token. This allows Trezor to utilize the screen and inform users about any authentication requests before approving them.
The device is protected with a private key recovery phrase. This is a 24 word phrase to restore your device.
NOTE: You should write down the phrase offline and keep it in a safe place. It is extremely important to keep this phrase outside the view of any camera as anyone can use it to restore your device and steal your funds.
For daily use, the wallet features a security PIN to use the Trezor One. Once your device is connected, the digits 1 through 9 show up in randomised order. You then go to your computer and enter your PIN code based on the location of the digits on your device screen. This is an extra layer of security to prevent keyloggers.
An extra layer of security is the Trezor’s passphrase feature which allows users to generate a new wallet. If you enable this feature, you will be required to enter your passphrase in addition to your security PIN to access those specific wallets.
So say a thief demands you to give them access to your device. You can give them your PIN code which accesses a wallet with fewer funds. Whilst keeping the bulk of your crypto assets stored safely behind passphrase protected wallets.
Can the Trezor One be hacked?
Kraken Security Labs announced they devised a new way to hack into Trezor devices within 15 minutes of physically having the device. They did this through voltage glitching using a device and cracking the PIN code using a custom Python script, which will reveals the recovery seed. According to them, the attack makes use of inherent flaws within the Trezor’s microcontroller. So it will be difficult for Trezor to fix this vulnerability without redesigning the hardware and putting out a new device.
In reply, Trezor noted that the attack cannot work remotely and if users turn on the passphrase feature on the device. Trezor also reassured users that physical access is only a threat to 6-9% of cryptocurrency users.
Trezor Model One 1.9.0 firmware update- does it fix the Kraken Security Labs hack?
In mid-April 2020 the Trezor One announced their latest firmware update to ver. 1.9.0 which features some updates on their security measures. Before we answer whether it can resolve the 15-minute hack devised by Kraken Security Labs earlier this year (see above section), let’s take a look at what these features are.
The new updates include 2 passphrase updates which firstly, allow temporary passphrase caching so you can switch between your various passphrase protected wallets when using the device. The passphrase cache is only temporary, so once you disconnect the device, nothing is saved. Secondly, users will now be asked to choose how to enter their passphrase on the device itself, rather than on your computer or phone.
A notable new features is the wipe code which acts as a “self-destruct PIN”. When entered either on the device itself or your computer or phone, the wipe code erases all private data from your Trezor and resets the device to the factory defaults. Trezor suggests users can write the wipe code somewhere near your device as a decoy PIN, so if a thief tries to unlock your device, they will make the Trezor erase itself.
It is also specifically noted that the latest firmware updates include a SD card protection feature exclusive to the Trezor Model T. See here to read more about the Model T’s firmware 2.3.0 updates.
From our research, Trezor has not directly responded whether their latest security firmware update fixes the hack devised by Kraken Security Labs. As mentioned previously, the vulnerability identified by Kraken cannot be resolved unless the hardware is redesigned. So the latest firmware updates can only indirectly give hackers have a harder time accessing your device but not resolve the core vulnerability. The fact that it only took Kraken 15 minutes of physical access to the device to hack it, and their suggestion that the glitching tool could be mass produced for sale at around USD$75 continues to be extremely worrying. For this reason, whilst we appreciate Satoshi Lab’s efforts to continue improving the device we cannot reinstate the security score given to the Trezor prior to the Kraken hack being discovered.
Security 3/5
Multicurrency Support
Trezor One has support for around 1000 coins including BTC, BCH, Litecoin, Ethereum, Dash, Zcash and Stellar. However, of the most common coins on the market, it does not support Ripple (XRP), Cardano (ADA), Solana (SOL) and others.
This can be a limitation in comparison with more recent hardware wallets.
The Trezor One is relatively compact at 2.36 x 1.18 x 0.27 inches (60x30x6mm), and weighs 0.42oz (12 grams).
It has an 128×64 pixel OLED monochrome display. Despite the screen being small, it is still better than the Ledger Nano S in that cryptocurrency addresses can fit entirely on the screen.
Trezor has the unique feature where you can personalise your home screen. Your device can show off your personality by choosing from 1 of the default pictures or uploading your own.
The device has two physical buttons to help users navigate the wallet functions.
It relies on USB type-B for connection to the computer. However, the cable provided is quite short, which can be inconvenient when using the device with your computer.
In terms of portability, the device is conveniently small and can easily fit into your pocket. Additionally, some people would enjoy the home screen customisation function.
Hardware design 4.5/5
Ease of use 4/5
Mobility
The device supports laptops and Android mobile devices. There is currently no support for iOS. Users will need to download the software, Trezor Manager from the Google Play Store. This enables users to use the app to send cryptocurrencies, generate addresses, and view their account details.
It also supports integration with Bitstamp and Bitex exchanges. So users can sign in and send cryptocurrencies to these exchanges directly using the device.
Trezor One: Worth it in 2022?
The device is by no means outdated. Save for a few major altcoins as outlined above the device still supports most major cryptocurrencies.
Unless you really want the colour touchscreen of the Trezor Model T, this older Trezor One device still does what most casual cryptocurrency traders need it to do.
And the lower price point is definitely an attractive factor.
Verdict
The wallet supports most major cryptocurrencies. However, the lack of support for Ripple (XRP), Cardano (ADA), Solana (SOL) and a number of later ERC-20 coins is a serious disadvantage.
Some will appreciate the recent IDEX, Switcheo and other DEX integrations as an added bonus.
Lack of iOS support is also problematic, though this is for any Trezor device.
The device has a decently sized screen. Whilst not as nice as the colour touchscreen of the Trezor Model T, the buttons make it easy to use. Being able to see the entire address on-screen is a huge plus.
Some users may be enticed by the ability to customise your home screen which is a feature unique to Trezor devices only.
Updated on 10th March 2020 on the device’s security concerns. Updated on 14th May 2020 on the Trezor One’s firmware 1.9.0 update and whether it can resolve the hack devised by Kraken Security Labs.
The KeepKey wallet was released in 2015. Retailing for USD$49, it is a hardware wallet that digital asset holders can use to store their cryptocurrencies safely. This is a relatively affordable price tag compared to its competitors. But its lacking features and security issues do make it lag behind in the cryptocurrency hardware wallet competition.
The wallet supports well over 40 different types of cryptocurrencies. However, the wallet does not have the reputation of its competitors: the Ledger Nano S, Ledger Nano X and Trezor Model T. Regardless, the wallet still features certain structural and aesthetic features that could make it a decent option.
At the moment, the future of ShapeShift, its hardware division KeepKey, and its namesake hardware wallet are up in the air. In 2021, ShapeShift began winding down its operations as a business and transitioning governance and ownership to a DAO holding its FOX tokens. Given that this is a substantial change for such a project with not just software products but also hardware, our readers should think twice before committing themselves to a product from a company with such an uncertain future.
Key features of the KeepKey:
Larger screen– Displays full cryptocurrency addresses without scrolling
Weighty luxury feel– Smooth finish and does not feel like it would break easily.
This multicurrency wallet can provide you a less costly alternative with a lot of the features of premium hardware wallets. Despite lacking the reputation of its counterparts, its beautiful design and ease of use still makes it a contender in the cryptocurrency wallet market.
Packaging
KeepKey comes with a unique product design and packaging. The box already has security seals on two sides to confirm it has not been tampered. Inside the box, you will find the KeepKey wallet, a USB-A to USB-C nylon braided cable to connect it to your computer, a card to write your recovery sentence on, and a warranty card. A leather case is also included to store your card safely.
The wallet also features a 2nd screen protection like Trezor which guards against Keystroke spying.
At the time of launch in 2015, KeepKey retailed a high price. With more established competitors, the price is now considerably lower at US$79.
KeepKey stores your private keys on its air-gapped chip, completely offline from the internet and other devices.
In addition, the KeepKey can be protected by a PIN code and is backed up by a 12 word recovery sentence. These features however are basically expected in hardware wallets nowadays with both the Ledger and Trezor having the same.
Specifically, the KeepKey has number randomisation to prevent hackers from stealing your cryptocurrencies with malware. This is where the location of the PIN numbers is randomised each time.
KeepKey, however, does not go into any further details on its security features.
Update: KeepKey PIN Vulnerability Discovered by Ledger team
Ledger (yes the ones behind the Ledger Nano X) has previously discovered a physical vulnerability in the Trezor and KeepKey hardware wallets which allows hackers to access to your recovery phrase in less than 5 minutes if they physically have your device. Unfortunately this vulnerability appears to be completely unfixable as it relates to how the devices are manufactured. Here we discuss this vulnerability in a bit more detail in relation to the Trezor.
Now the Ledger team have discovered another vulnerability, this time in relation to PIN verification. This hack involves creating a database of the differing voltage output compared with the secret values mixed with the PIN code stored in the KeepKey’s memory. This database can then be used to recover the secret values in any KeepKey device. So if a hacker has physical access to your KeepKey, they can connect your device to read your chip’s voltage output and compare it against the database. From there the hacker can recover your PIN code.
ShapeShift, the manufacturers of the KeepKey have patched the PIN verification vulnerability in their firmware version 6.4.1. Despite this, we have still had to revise our security rating from 3.5 to 3 out of 5 for the KeepKey, as the physical vulnerability remains unfixable.
3/5 Security Rating
Multi-Currency Support
Keepkey natively supports 7 of the most common cryptocurrencies: Bitcoin, Bitcoin Cash, Bitcoin Gold, DASH, Dogecoin, Ethereum and Litecoin, as well as 40+ ERC-20 tokens.
At the release of my video in August 2018 comparing the Trezor Model T, Ledger Nano S and the KeepKey, the latter did not support ERC-20 tokens.
However, KeepKey does continuously work on developing their firmware and ERC-20 tokens are now supported.
Nearly 4 years later, there is still no support for it by KeepKey. And seeing the rate at which they’re adding new non-ERC-20 tokens, they’re unlikely to make much progress with that or any other top coins like SOL, DOT or ADA, among many more.
2.5/5 Multi Currency Support
Hardware Design
The KeepKey is one of the largest cryptocurrency hardware wallets at 38 x 93.5 x 12.2 mm. It also has a substantial feel making it more luxurious than other cryptocurrency wallets. However some people, myself included, would prefer smaller sized wallets.
The KeepKey also boasts a simple design by only having 1 button.
One may be concerned that having only 1 button will mean that it will take ages to set up the recovery seed and enter PIN numbers. However, KeepKey makes it simpler by having most of the processes done via its app. The button is generally only used for on/off and as a confirmation button.
The KeepKey also has the largest display screen sporting a 256×64mm 3.12″ OLED screen. The screen is protected by a polycarbonate casing although its still easy to scratch. The scratches, however, are only cosmetic and do not affect the use of the device.
The benefit of this large display screen means it can display cryptocurrency addresses and even the recovery phrase in its entirety. This saves users from scrolling back and forth, which is a huge plus.
The KeepKey uses a USB-A to USB-C interface for charging and connecting to the PC. Windows users would surely prefer this. One problem with Ledger Nano S devices is that the USB micro-B connection becomes unstable after prolonged use. With the updated USB-C connection, its longevity should be greatly improved. However, it is unknown whether this is also a problem in the KeepKey wallet because frankly, we do not use it often.
Installation
Since ShapeShift acquired KeepKey and retired the KeepKey Chrome extension, the setup of your KeepKey can only be done through the official ShapeShift web platform. It’s also important to point out that during the setup you’ll also have to download and install the KeepKey updater software, so one should take extra care in making sure that they’re interacting with the real ShapeShift website to avoid installing malware and losing your digital assets.
It goes without saying that when writing down the recovery phrase; ensure there are no cameras recording and do not save a copy of it onto your computer. This is because anyone with the recovery phrase can use it to restore your device and potentially steal your assets.
4/5 for Hardware Design 4/5 of Ease of Use
Shapeshift Integration
The main selling point of the KeepKey is its integration with Shapeshift. This means that the wallet already has an in-built crypto-to-crypto exchange inside. This makes trading between cryptocurrencies easy and convenient.
This feature is held back by its limited cryptocurrency support. However it should not be a problem for users who do not intend to trade in any cryptocurrencies other than the major ones supported by Shapeshift.
KeepKey Client Interface
Verdict: Is the KeepKey still worth buying in 2022?
Whilst their newest firmware update has fixed the recently discovered PIN code vulnerability, there are other vulnerabilities which directly relate to KeepKey’s hardware and are not fixable.
And whilst the KeepKey is the most affordable wallet at USD 49, the security issues are enough to make consumers seriously consider spending an extra USD 10 for a Ledger Nano S (soon to be retired), or a USD 30 extra for the new Nano S Plus, both of which are more secure, compact, and have a wide range of cryptocurrency support available.
Security Rating: 3/5 Multi-currency support: 2.5/5 Hardware design: 4/5 Ease of use: 4/5 Final Score: 3.38/5
