Binance acquired Trust Wallet in 2018 in exchange for cash and BNB tokens (worth $14.80 at the time).
According to CoinMarketCap, the cryptocurrency is currently trading at $1.49, down 7% in the last 24 hours.
According to TechCrunch, Binance purchased the wallet in 2018 for a combination of cash, Binance stock, and a percentage of BNB tokens. BNB was worth $14.80 in July 2018 and is now worth $244.
Trust Wallet is a solution that allows users to store and utilize bitcoins across the DeFi network. Binance's new wallet is remarkably similar; it will support 30 distinct blockchains and can be used for staking, lending, and borrowing.
The new wallet, however, is only accessible through the platform's native app, which may be restricting to users who do not have or do not choose to sign up for a Binance exchange account.
TWT token had a good week before Binance's launch, surging by more than 60% since last Wednesday. Binance announced the listing of TWT futures on its exchange five days ago, and the daily volume increased from $80 million to about $476 million on Monday.
When asked what role Trust Wallet will play alongside the rollout of Binance's wallet, a Binance spokeswoman did not immediately comment.
The launch of Binance's Web3 wallet has created a ripple effect in the cryptocurrency community, leading to a drop in Trust Wallet's market performance. The future of Trust Wallet now faces uncertainties as it contends with its parent company's ambitious foray into the Web3 space. Only time will tell how this competition plays out and whether TWT can maintain its standing as a prominent crypto wallet in the face of evolving market dynamics and growing competition.