Despite the FTX Crisis, Trust Wallet Token Surges 92% in One Week

Meeting the Demand for Secure Custodial Personal Wallets

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Although the cryptocurrency market took a direct hit as the global cryptocurrency exchange FTX filed for bankruptcy amid a liquidity crisis, the Trust Wallet Token, a cryptocurrency related to personal wallets, showed a sharp rise. This is interpreted as a result of the demand to entrust cryptocurrencies to safe places, triggered by the bank run and the possibility of an FTX hack.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 8:33 a.m. on the 15th, the price of Trust Wallet Token was recorded at $2.26 (about 2,995 KRW), up 11.73% from the previous day. Compared to a week ago, it surged 92.31%.

Trust Wallet Token refers to the coin circulated on the Trust Wallet, a personal cryptocurrency wallet platform. Through Trust Wallet Token, holders gain the right to participate in policy decisions such as determining new blockchains and cryptocurrencies that Trust Wallet will support, and can also receive benefits like discounts when using decentralized exchange (DEX) services.

Trust Wallet began to attract attention after being acquired by Binance, the world's largest exchange, in August 2018. It is evaluated as being specialized in Ethereum or Ethereum-based cryptocurrencies and non-fungible tokens (NFTs). Recently, it has been growing in size and is often compared to MetaMask, the world's largest personal wallet platform.

The surge in Trust Wallet Token’s price started after Binance CEO Changpeng Zhao posted a tweet on the 13th. CEO Zhao said, "Self-custody is a basic human right," and added, "We need to check whether this right is properly exercised." After CEO Zhao explained the use of personal wallets and introduced Trust Wallet, the price showed an upward trend. The demand from users seeking reliable personal wallets coincided with this, drawing market attention.

Currently, in the coin market, trust in exchanges is declining as the possibility that FTX will not properly return users' assets increases, along with suspicions of hacking damage worth about 870 billion KRW. As a result, demand is growing to move digital assets from exchanges to personal wallets.

This movement is also leading to increased interest not only in hot wallets, which are online personal wallets, but also in cold wallets. Cold wallets refer to personal cryptocurrency wallets that operate offline, such as USB devices. According to Google Trends, the search index for the keyword 'Cold Wallet' was 32 from the 30th of last month to the 5th of this month, but surged to 100 from the 6th to the 12th of this month. Additionally, in the ranking of rapidly rising related search terms, FTX ranked first, and cryptocurrency security storage devices ranked second and third.

This content was produced with the assistance of AI translation services.