What Is Trust Wallet And Why Has It Spiked 75% Over The Last 7 Days? | marketrealtime.com


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By CNBCTV18.com  IST (Published)

Trust Wallet is a non-custodial, mobile-based cryptocurrency and NFT wallet that supports 65 blockchains and more than 4.5 million assets. The wallet also has its own native cryptocurrency, which is none other than the Trust Wallet Token (TWT). It is a utility and governance token available to Trust Wallet’s 25 million-plus users.

These are torrid times for the crypto industry. The FTX crash has had a ripple effect on the entire market and further exacerbated an already bitter crypto winter. Most coins are in the red over the previous seven days, and the global crypto market cap has also dipped roughly 20 percent over the last ten days.

Amidst these bear market conditions, one token has managed to buck the trend and register 107 percent gains over the last week. That’s right, the Trust Wallet Token (TWT) skyrocketed from $1.10 on November 8 to $2.30 at the time of writing, according to data from CoinMarketCap. But what is TWT, and why has it shot to the moon in recent days? Tag along to find out.

What is the Trust Wallet Token?

Trust Wallet is a non-custodial, mobile-based cryptocurrency and NFT wallet that supports 65 blockchains and more than 4.5 million assets. The wallet also has its own native cryptocurrency, which is none other than the Trust Wallet Token (TWT). It is a utility and governance token available to Trust Wallet’s 25 million-plus users.

Trust Wallet users can use their TWT to participate in the platform’s decision-making process. For instance, TWT holders can vote on several major decisions concerning the Trust Wallet app, including upcoming updates, new features, etc. TWT holders can also receive privileged access and discounts on crypto investments made through Trust Wallet. In a nutshell, TWT is designed to provide value to Trust Wallet users. Further, as a BEP-20 asset, it can be used as payment for services and swapped with other crypto assets.

Why is TWT shooting for the moon?

TWT has seen an astronomical rise in valuation over the last few days. The coin even touched an all-time high of $2.68 last night and is currently up 126 percent in the previous 90 days and nearly 215 percent YTD. But what’s causing these astronomical gains? The answer is simple: it’s a combination of investor FUD after the FTX crash and some recent tweets from Binance CEO Changpeng Zhao. Let’s delve deeper.

As you may know, FTX, once the second-largest cryptocurrency exchange, has paused withdrawals and declared Chapter 11 bankruptcy. Its native cryptocurrency, FTT, has also plummeted more than 90 percent over the last few days. Industry insiders have labelled the crash as the crypto industry’s “Lehman moment”. Moreover, any firms that have funds tied to the exchange could be left with nothing to show for their investments.

As such, the FTX crash could kick off a contagion effect, wherein several firms exposed to the bankrupt crypto exchange could also face cash crunches, insolvency or worse. It’s the same thing that happened with the Terra-Luna crash; once the dust had settled, several firms, including 3 Arrows Capital (3AC), Voyager, Celsius, BlockFi, Vauld, etc., faced major cash flow issues. Some of these firms even stopped withdrawals and filed for bankruptcy, with customer funds stuck in court proceedings.

There is a similar fear with the FTX crash. Investors are skeptical of leaving their funds on an exchange or DeFi wallets. Most people are trying to move their funds from these custodial wallets to offline, non-custodial wallets. This notion is backed by recent CryptoQuant data, which shows that nearly $3.7 billion worth of BTC, $2.5 billion of ETH and over $2 billion worth of stablecoins have been taken off exchanges between November 6 and November 13.

Now, one of the leading non-custodial crypto storage solutions happens to be Trust Wallet. Further, Binance CEO Changpeng Zhao effectively shilled the wallet through his tweets in recent days. “Self-custody is a fundamental human right. You are free to do it at any time. Just make sure you do it right. Recommend start with small amounts to learn the tech/tools first. Mistakes here can be very costly,” said Zhao in a tweet on Sunday. “@TrustWallet your keys, your coins,” he added.

“Not your keys, not your coins” is a hugely famous crypto phrase that became even more popular after the Terra-Lune crash. It basically means that, since users do not have access to their private keys with custodial wallets, they do not have true control of the funds stored in them. Users cannot withdraw funds from their wallets if an exchange decides to pause withdrawals. This is not the case with non-custodial storage solutions like Trust Wallet.

Cryptocurrency stores in non-custodial wallets are safe and completely under your control.

Conclusion

Binance acquired Trust Wallet in 2019, and Zhao’s tweets have sent TWT skyrocketing. It shows the power of industry big-wigs like Elon Musk, Changpeng Zhao, Vitalik Buterin, and others have over investor sentiments. One tweet can send the price of a token shooting for the moon or crashing to the deepest depths.



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