Arguably the most powerful man in crypto has just put his official endorsement on Trust Wallet Token (TWT).
And when Binance CEO Changpeng Zhao has something positive to say about an asset these days, good things tend to happen.
Obviously, following the shocking downfall of FTX last week, traders have been scrambling to find a safe option for storing tokens. This kind of dramatic event, just like we saw with the Mt. Gox collapse nearly a decade ago, causes widespread panic and FUD in crypto that can linger for months or even years.
Shilling Trust Wallet
So always the opportunist, CZ made one of his (supposed) favorite options for self-custody in crypto known. A few commenters even noted that Binance’s CEO might have a personal incentive for shilling Trust Wallet out of all the options that are available for self-custody.
Regardless, Trust Wallet is now getting a ton of traction due to the perfect storm of:
1) Traders’ trust in exchanges perhaps being at its lowest level in 9 years
2) The CEO of the most powerful exchange in the world is endorsing it
The premise of the product is quite simple – A hot wallet for mobile users that allows (relatively minor but real) interest to be earned and offers some other minor benefits that exchanges offer without needing to hand over your keys to anyone.
There are, of course, other hot wallet options with good track records that are available as well, such as Metamask (which Santiment utilizes for sign-ons and SanR connectivity) as well as MyEtherWallet (also known as MEW).
Regardless, Trust Wallet has been getting a major share of the limelight over the past couple of days since CZ shined his glorious influencer light on it.
And that leads us to its native token, Trust Wallet Token (TWT).
TWT Price Action After the Endorsement
The native token associated with Trust Wallet has been on a tear since CZ’s Tweet, pumping its price at its peak to an additional +39% following the Tweet. Its trading volume pumped a staggering +159% at its peak after the Tweet, as well.
The trading crowd had already gotten a nice head start on pumping TWT’s price over the weekend, and its price is currently +103% in the past 48 hours.
On Trust Wallet’s community page, the token’s use cases are described as:
A utility token that will be used to incentivize all Trust Wallet users. The goal of the Trust Wallet 456 team is to make cryptocurrencies more accessible. By distributing TWT, it will help spread awareness and gives everyone a chance to own their very first crypto. The token is available in both Binance Chain 2.1k and Binance Smart Chain 327. The Trust Wallet development team has also launced TWT on the Solana 138 blockchain as a SPL token.
Yes, the token is a Binance Chain token, which puts a bit of a damper on the trustability of CZ’s “unbiased” endorsement of TWT. And this recent pump has brought it into question amongst some members of the Reddit community:
As for whether TWT is a good investment is obviously up to your assessment of the token’s use case, the validity of Trust Wallet in the long term, and what your risk profile is. But in terms of what metrics are saying now:
On-chain transaction volume is very high, which is typically indicative of at least a mid-term cooldown period, according to TWT’s most recent 6 months of data.
Network realized profit is seeing its largest spike of all-time, and by a wide margin. Supported by average trading returns on our MVRV metrics. This is also indicative that there may be some overbuying and profit-taking happening at the token’s new all-time high.
We can also see that mid and large-tier TWT addresses have been growing quite steadily in number. And certain tiers, like the 10k to 100k and 1m to 10m addresses, have really upped the number of addresses in the past week.
Always proceed with caution when it comes to how much you can “trust” any application, platform, or wallet. Even if it has the word “trust” right there in the name and is being endorsed by the man who is driving crypto markets most.
Hot wallets can indeed be a nice compromise between cold wallets (very safe) and exchanges (less safe). But at the end of the day, choosing one will always have an inherent risk. And it is a good thing that many are questioning the pumping of a native token associated with one.
Trusted
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