The collapse of FTX highlighted the potential risks of holding crypto on exchanges. In contrast, investors are looking for self-protecting crypto wallets. One of the most popular crypto wallets, Trust Wallet, which Binance CEO praised, comes to mind. According to crypto expert Dominic Basulto, while the Trust Wallet Token (TWT) is an interesting short-term game, its long-term prospects are less certain. The expert examines the altcoin and asks, “What happens when the FTX effect disappears?” He is also looking for an answer.
The token of Trust Wallet, praised by Binance CEO, came to the fore
cryptocoin.comAs you follow, the best cryptocurrency of 2023 has increased stratospherically by 227% to date. It has also recorded a stunning 96% increase over the past 30 days. But until November, no one was talking about it. This was the Trust Wallet Token (TWT), which came to the fore after the FTX crash.
The reason is simple: after FTX, people are timid about holding crypto on exchanges. Also, Trust Wallet Token solves this problem. Trust Wallet Token is the service and governance token of Trust Wallet, one of the most popular personal surveillance crypto wallets for investors. Instead of storing crypto on a major exchange, you can simply store it on your mobile phone. Considering all the drama surrounding FTX and the controversies about the future of crypto, Trust Wallet Token needs to be on your investment radar.
Trust Wallet and other crypto wallets
Of course, Trust Wallet is not the only self-protecting crypto wallet solution on the market today. For example, if you are an active Coinbase user, you probably downloaded Coinbase Wallet to your mobile phone. So Trust Wallet Token is not some kind of exotic crypto. A crypto you might not have heard of as a casual investor if you don’t use Trust Wallet. Currently, the Trust Wallet Token is actually one of the 50 largest cryptocurrencies in the world by market cap.
In terms of overall features and performance, Trust Wallet scores very high. Many Blockchain wallets only allow you to send and receive crypto. Trust Wallet does this even better by allowing you to trade crypto via an established exchange. It has a large collection of 160,000 cryptos to choose from among 40 different Blockchains. Also, Trust Wallet does a good job at isolating all the layers that complicate crypto for people to understand. Overall, Trust Wallet is secure. It is free to use and supports many Blockchains and cryptos.
Link between Binance and Trust Wallet Token
To understand why the Trust Wallet Token has really skyrocketed, you need to know that it has a direct relationship with Binance, which plays an important and controversial role in the ongoing FTX drama. In short, Trust Wallet is Binance’s official crypto wallet. Just as you’ll likely use Coinbase Wallet if you’re a Coinbase customer, you’ll likely use Trust Wallet if you’re a Binance customer.
This explains why the Trust Wallet Token has definitely exploded since early November. Amid all the negative news about FTX, Binance is actively promoting the idea of self-sufficient crypto solutions. This gave the Trust Wallet Token even more importance. By purchasing Trust Wallet Token, you are adapting to the idea of self-custody. And, at least indirectly, you are also aligning yourself with Binance.
Is the Trust Wallet Token a long-term purchase?
Most likely, TWT will continue to benefit from market volatility in the short term. Investors will likely continue to move their money from troubled cryptocurrency exchanges to self-custody crypto wallets like Trust Wallet. This will likely put continued upward pressure on the price of TWT.
Long-term, though, the story is more complex. First, the ‘FTX effect’ will go away at some point. Therefore, there may be a limited window to profit from TWT. Secondly, there is a lot of fear, uncertainty and doubt swirling around Binance right now. This is cumbersome as Trust Wallet is Binance’s official crypto wallet. What will happen to the Trust Wallet Token if at any point people perceive that Binance could be the ‘next FTX’?
Finally, there is the problem of potential competitors. For example, one of the most popular crypto wallets is MetaMask, which has 30 million users worldwide. There is no cryptocurrency yet. However, there are constant rumors that this token will be released soon. In this case, it is possible for investors to choose between two competing cryptocurrencies. Trust Wallet Token or MetaMask token? Given the immense popularity of MetaMask, this will negatively affect the relative attractiveness of the Trust Wallet Token.
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