Binance, the leading crypto exchange by volume, unveiled its proprietary Web3 wallet. This announcement was closely followed by a 7% decrease in the trading price of TrustWallet’s native token, TWT, causing speculation among investors about the future of the token. TrustWallet, a...
Binance, the leading crypto exchange by volume, unveiled its proprietary Web3 wallet. This announcement was closely followed by a 7% decrease in the trading price of TrustWallet’s native token, TWT, causing speculation among investors about the future of the token.
TrustWallet, a non-custodial wallet app and browser extension, became part of the Binance ecosystem in 2018, under a deal where the compensation included a combination of cash, Binance stock, and a part of Binance’s native BNB token. During the acquisition period, the value of BNB token stood at a mere $15, a stark contrast to its current worth of $250. The exact acquisition cost remains undisclosed.
Now Binance has unveiled a competing Web3 wallet similar to Trust Wallet. The new wallet offers facilities for staking, lending, and borrowing across 30 different blockchains. However, it’s noteworthy that Binance’s Web3 wallet is only accessible via the exchange’s native app, posing potential restrictions for users reluctant to sign up for a Binance account.
Before this setback, TWT had been enjoying a positive run, with its value soaring by over 60% in just one week. But the tables turned quickly after Binance’s announcement, causing TWT to tumble from its high and currently trading at $1.49.
Interestingly, despite the competition from its parent company, TrustWallet saw a surge in daily volume from $80 million to a whopping $476 million on Monday. This surge came shortly after Binance announced the listing of TWT futures on its exchange platform.