Trust Wallet Token (TWT) is leveraging the growing sentiment for self-custody as the viable channel to guarantee crypto investors the opportunity to exercise their fundamental rights. TWT sustained the 7-day uptrend by gaining 21% in the last 24 hours to hover around $2.30, as per Coinmarketcap data.
TWT rally by 100% in the past 7 days coincides with the industry-wide support for the crypto community to regain control over their digital assets from centralized wallets and exchanges.
FTX Downfall Prompts Support for Self-custody
Acquired by Binance in 2018, Trust Wallet Token allows holders to exercise voting rights on changes while extending in-app purchase discounts. Consequently, TWT gains are attributable to the growing support for self-custody wallets from the FTX Group collapse that revealed recklessness in how centralized exchanges handle user funds.
Pressers and tweets emphasizing the importance of self-custody are fueling TWT’s bullish steam as they urge crypto users to break the custodial chains. Blockware Solutions, in their market intelligence newsletter, emphasized that an investor has not purchased bitcoins in a wallet unless one controls the private keys.
Further, the Friday publication disclosed that the admission by FTX Group insiders of the mysterious disappearance of $515 million cryptos proves that investors in digital assets can hardly trust the centralized institutions.
Binance CEO – Changpeng Zhao tweets are prompting the uptake of Trust Wallet by the crypto community when critiquing centralized exchanges for retaining passphrases they use to initiate transactions. Conversely, the tweets cite FTX’s demise to encourage crypto investors to flee custodial exchanges and avoid losing deposits.
While TWT’s price did not match yesterday, it tested a high of $2.45 earlier today. At press time (1003 UTC), TWT ranks 44th largest crypto asset with a total market capitalization of $942 million per Coinmarketcap.
TWT is set to lead the self-custody rally as investors’ trust in centralized entities declines following the FTX collapse. The preference for self-custody is captured in Coinglass data indicating a plummeting Bitcoin balance within centralized exchanges to 1.885 million from 2.11 million recorded on 7th November.
Beyond TWT, the industry-wide support for decentralized exchanges from Shapeshift’s Founder Erik Vorhees and Polygon’s Co-Founder Sandeep Nailwal has propelled another self-custody wallet Safepal (SFP) by 15% as per Coingecko. Consequently, TWT can sustain the bullish steam as investors swap custodial wallets and exchanges for self-custody.
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