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Ledger essentially backtracked, at least for now. But the damage to the company’s trust and reputation was already done. The mere fact that they thought the Recover service was a good idea to inject into existing Ledger devices made it evident that in their quest to expand their user base, they didn’t understand why their existing users chose them in the first place.
A lot of Ledge users have simply given up on the company and switch to a different hardware wallet.