In the mass exodus of users from centralised exchanges following the epic implosion of the world’s fourth largest crypto exchange FTX, a lone token has gone on a blistering rally, surging more than 120% in the last few days.
Last week on November 12, Trust Wallet Token (TWT) was trading at an average price of US$1.18 but following the news of FTX’s collapse, the token’s price exploded to reach a new all-time-high of US$2.60 on November 15 — a very respectable 120% gain in just three days.
At the time of writing, TWT has pulled back a little, currently changing hands for US$1.87.
What is the Trust Wallet Token and why did it rally so hard?
TWT is the native utility token of Trust Wallet, a crypto wallet that allows investors to have full control over their own assets. Trust Wallet also allows investors to trade crypto assets including NFTs and offers services like crypto staking.
When the news broke that FTX — which was widely regarded as one of the most trusted centralised exchanges in the business — had gone belly up, distrust towards centralised exchanges reached a crescendo.
Crypto investors clamoured to secure their crypto assets in non-custodial wallets that aren’t hosted by potentially dodgy exchanges, explaining in large part why the price of TWT surged in response to FTX.
While the TWT token began rallying as news of FTX’s insolvency hit the headlines, the colossal price action really kicked off when the CEO of Binance, Changpeng Zhao (CZ) sent out a Tweet that promoted Trust Wallet as a safe form of self-custody.
Popular crypto analytics service Santiment, published a chart with a screenshot of Zhao’s tweet attached to help illustrate the level to which CZ’s tweet sent TWT surging.
It’s important to note that Binance acquired Trust Wallet in 2018, which explains why CZ was comfortable with shilling the token so openly.
For context, a non-custodial crypto wallet can only be accessed with the private keys attached to the wallet address. Anyone with access to a wallet’s private keys can gain access to that wallet and transfer funds how they wish.
Contrastingly, custodial wallets on centralised exchanges like Binance, Coinbase, and the now-destroyed FTX, store the keys to your wallet internally on the exchange.
The phrase “not your keys, not your crypto” has become a mantra that echoes across Crypto Twitter, as scepticism towards centralised exchanges continues to mount.