Ledger, one of the top hardware wallet providers, recently unveiled a multisig feature which has drawn criticism from cryptocurrency enthusiasts due to associated fees and limited device compatibility.
What Is Ledger’s New Multisig Feature?
Ledger’s updated multisig feature enables users to coordinate multisig transactions directly through its backend, eliminating the need for third-party tools like Specter or Sparrow. This integration aims to streamline multisig transactions while strengthening security by allowing multiple signers to verify transactions securely. It was announced alongside Ledger Nano Gen5 device and revamped Ledger Wallet app; however it has received criticism due to transaction fees introduced as well as exclusion of older device models (COIN360).
Controversial Fees Ledger’s new multisig feature comes with two fees that may prove controversial: a flat $10 fee for standard crypto transfers and variable fee of 0.05% on token transfers – on top of standard network gas costs. According to Ledger, these costs cover their secure and convenient access provided through Ledger Multisig.
Critics contend that Ledger’s fees are excessive and infringe upon its history of championing decentralization and self-custody principles. Furthermore, developers have expressed worry that this move turns multisig users into revenue for Ledger, potentially turning multisig users into a cash cow for them as opposed to providing secure custody solutions to customers. According to CryptoRank
Exclusion of Older Devices
Another source of controversy has been Ledger’s failure to support older models like the Nano S. The multisig feature does not work on this device, leaving many users feeling excluded and raising questions about its commitment to existing customer bases and product lifecycle management practices. These developments have generated criticism in Crypto Economy forums as a whole.
Community Reactions
The cryptocurrency community has expressed strong views regarding Ledger’s new multisig feature. Many users have taken to social media platforms in an effort to voice their dissatisfaction; some even threatened to boycott Ledger products altogether in protest. This reveals the critical nature of transparency, fairness, and user-oriented policies for maintaining trust within the crypto ecosystem.
Conclusion
Although Ledger’s multisig feature provides increased security and smooth transaction processes, its introduction of additional fees and exclusion of older devices have caused considerable discontent among cryptocurrency community members. How the company responds will have a direct bearing on their future relationships within this space.
