Trust Wallet Token - $TWT, Asset Review
General Information-What is Trust Wallet
Trust Wallet Background
Trust Wallet Funding/Collaboration
Token Information-Tokenomics
Supply Schedule
Additional Information-
Security
Technical Analysis
Conclusion
General Information-
1. What is Trust Wallet?
Trust Wallet is a hot wallet that supports decentralized applications and supports dozens of popular cryptocurrencies. Users can either download the app on their mobile phones or computers. The mobile app has a built-in decentralized exchange and is an open-source platform for developers to build on. Another cool thing is the hot wallet provides an option to purchase crypto with credit cards, unlike many other hot wallets. Lastly, the Trust Wallet allows for staking and support for NFTs on both Binance Smart Chain and Ethereum. All-in-all the wallet is created to become the interface of all crypto by making it simpler for crypto users to access other crypto applications.
Figure A
2. Trust Wallet Background
Trust Wallet is a project based out of San Francisco and was founded by Viktor Radcheko in 2017. He came up with Trust Wallet because he was fascinated with the idea of self-custody and how it may be improved. The idea grew fast when Viktor was able to display any ERC-20 token associated with the holder's address. Once Viktor saw growth in user count, he started understanding that there is more to build. His growth eventually led to Binance acquiring Trust Wallet for an undisclosed amount of money. Viktor and the Trust Wallet team still have creative control over the software as the team still works autonomously. Today, Trust Wallet has 4.5 stars, 10M+ downloads, and is rated highly in the play store for android. Trust Wallet has been one of the earliest hot wallets to hit the crypto market with a lot of growth behind it.
3. Trust Wallet Funding/Collaboration
Trust Wallet did not hold a private sale or raise any money when it launched according to Messari.io, more on that here. We will go over tokenomics in the next section which is where things get a little interesting. However, I want to spend a moment discussing some collaborations around Trust Wallet. Trust Wallet doesn’t have any fancy venture capitalist panel of investors but they were acquired by Binance as mentioned in the last paragraph. In the image below you will see CZ (CEO of Binance) and Viktor (CEO of Trust Wallet) on the right. Another collaboration was recently in August 2022, Trust Wallet announced a partnership for Instagram NFTs. This partnership integrates the hot wallet on Instagram to share NFTs with the public. There aren’t many partnerships because there doesn’t need to be. Trust Wallet is growing as an independent platform to help make crypto and web3 more accessible.
Figure B
Token Information-
Tokenomics
$TWT(Trust Wallet Token) is the native token for the Trust Wallet Network. Currently, the circulating supply is 416,649,900 with a max capped supply of 1,000,000,000 tokens according to CoinMarketCap. Initially, the token supply of $TWT 90 billion tokens but the Trust Wallet team made the executive decision to burn 89 billion tokens. I think this was a clever decision as we jump into the token usage next. The $TWT token has a few benefits holding it like, in-app discounts, DEX services, and governance. Trust Wallet was originally ERC-compatible and later integrated the BSC chain with the Binance acquisition. Then Trust Wallet was able to successfully integrate 65 blockchains and supports over 4.5M+ assets which may attract lots of future users.
2. Supply Schedule
This is where things get a little dodgy. I don’t mean to bash $TWT but I have to be transparent or this report is pointless. The Trust Wallet team shares the tokenomics of what they are doing with the 1 billion tokens but doesn’t share the supply schedule. According to CoinMarketCap, the tokens allocation is as follows, 46.7% is for reserves/incentives, 30% is allocated to wallet reserve, 15% is allocated to developers, and 8.3% was put forth to user acquisition. But what about token distribution?! As you can see in figure c, there is no current roadmap for spending the unspent tokens. To be fair, they don't HAVE to share the info with us, but with a name like TRUST WALLET, I wish for more transparency. I am a user of Trust Wallet for full transparency but hesitate to buy $TWT at this current moment. More on that in the Technical Analysis section.
Figure C
Additional Information-
1. Security
How safe is Trust Wallet? We are going to skim a report from Stateful which did a comprehensive review of the architecture and codebase on Android and iOS devices. The full report may be found here. Trust Wallet is amongst one of the safer hot wallets that exist in today’s range of hot wallets in my opinion. Does that mean it's prone to malicious activity? Absolutely, and that’s okay because that might root in users not protecting themselves properly. Users, should NOT store all their money on a hot wallet in my opinion. There are also other safety measures that one can put into place to ensure safety and this may* help. Trust Wallet also was audited by CertiK in 2021 which also may be found here. All-in-all, there have never been any reports of the Trust Wallet team doing any malicious activity I do not store a lot of crypto on hot wallets.
2. Technical Analysis
Figure D
$TWT has had a good run from $.006 all the way to $2.74 yielding ~420x+ returns! Recently, $TWT hit all-time highs during this crypto winter! This is quite phenomenal because it is showing the power of the self-custody narrative with all the insolvencies during this bear market. With that, the Relative Strength Index, Volume, and (8) exponential moving average are all showing strength. Personally, I DO NOT buy tokens that hit all-time-highs for the long term unless I am swinging/scalping. $TWT is also breaking out from a triangle which may* be initiating a wave 3 pattern from an Elliot Wave perspective, full details are outlined in a video here. All in all, the price action of this chart is very bullish over the long term and looks better than 99% of altcoins at this moment.
Conclusion
Trust Wallet is a well-known hot wallet that has the flexibility of mobile, PC and is available on both android and iOS since 2017. It’s also trusted by more than 25MN+ people, has a dApp browser, staking enabled, token swaps enabled, and NFT support. It’s acquired by Binance, but still has its original team who is still building out the Trust Wallet day in and day out. I also have used the Trust Wallet and never had inconveniences which tell me that this wallet is viable to continue growing. I also believe that as we keep watching government overreach across the world, self-custody and DeFi will continue growing and in some ways Trust Wallet is front-running other custody options. This makes me bullish on Trust Wallet, but I can’t directly correlate that with the value of $TWT because they are not directly related. This doesn’t mean that I can’t be bullish on the future of $TWT because things may* change.