Weren't we up in arms about Ledger trying to do this shit with people's actual money?

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Two differences:

Ledgers business model (up until that point) was based around the fact that it’s impossible to extract a seed from their device

For most people, their social media account is not as important as their wallet. Everybody already uses a third party to login to social media (mostly google) and having the option to use cryptography instead is a huge improvement. Not every social media user wants that responsibility though.