Market Analysis Report (16 Jun 2021)
16 Jun 2021
I have talked about Trust wallet before, and also made a detailed video guide for the same. I do feel that an essential portion of the cryptocurrency industry is devoted to the security and custody of various crypto assets. In this regard, several solutions have emerged in the last few years. One of the best amongst them is non-custodial decentralized wallets that give complete autonomy and control to the asset holder. This report features one such wallet token that our team has personally used for months now, Trust Wallet and its native token Trust Wallet Token (TWT).
Trust wallet is a non-custodial decentralized crypto mobile wallet. The wallet code is open source and supports several blockchain networks such as Ethereum, Solana, Bitcoin, Binance Smart Chain, and many more. It simply allows a user to buy, store, exchange and earn crypto.
Trust wallet is much better in security than typical exchange wallets as here private keys to the assets are held by the user only. Moreover, the wallet has an inbuilt decentralized exchange on the platform. This improves the reliability of the whole wallet ecosystem.
The wallet is a web3 browser that is integrated with many Decentralised Apps (DApps). Thus, giving you access to several staking and other DeFi features. You can read all about Trust wallet in our earlier review.
Trust Wallet is a whole crypto ecosystem in itself. It supports around 40 blockchains along with more than 1,60,000 different assets. The major supported blockchains are as follows:
TWT (Trust Wallet Token) is an in-house governance token of Trust Wallet available in two token standards, i.e., BEP2 token (Binance Chain) and BEP20 token (Binance Smart Chain).
The token can be used for the internal governance of the wallet ecosystem and can be used to avail various discounts on wallet services. Further, it can be staked to earn passive income on the investment.
The use cases of TWT are as follows:
TWT (Trust Wallet Token) is the only governance tool of the Trust Wallet. A token holder can participate in decision making on the following matters:
Users are eligible for a discount on DEX services and purchasing crypto within the app. However, instructions for availing of these discounts are not available.
TWT can be staked on many Decentralised applications (DApps) to earn staking rewards.
TWT can be deposited to the liquidity pools of a Decentralised exchange.
|Maximum Supply||90 Billion|
|Tokens burned||89 Billion|
|Adjusted Maximum Supply||1 Billion|
|Circulating Supply||346.95 Million (34.70% of Maximum Supply)|
|Market Cap (USD)||USD 164.99 Million|
|Market Price (USD)||USD 0.4760|
|24 Hour Volume (USD)||USD 19.02 Million|
In October 2020, Trust Wallet integrated with Binance Smart Chain and simultaneously decided to burn 89 Billion TWT tokens which were not yet issued. The move for burning almost 99% of the Maximum Supply was made to improve the tokenomics of TWT.
As a result, TWT had less than 1% of Maximum Supply in circulation; now, it is 34.70%.
The total supply of TWT token is distributed as follows:
|Particulars||No. of Tokens||Percentage|
|Reserve Wallet||300 Million||30%|
|New User Acquisition||83 Million||8.3%|
|Community reward for Existing users||120 Million||12%|
|Market Circulation||347 Million||34.7%|
30% of TWT total supply has been reserved in a wallet whose distribution is not yet decided. Other than this, 8.3% of the total supply is reserved for the acquisition of new users, 12% for rewarding existing users and 15% for developers.
There is no schedule for how the platform would issue these reserve tokens.
TWT (Trust Wallet Token) is listed on several exchanges. The list can be referred to as follows:
Following are the possible limitations of TWT (Trust Wallet Token):
With the higher adoption of Cryptocurrencies and more than 10Million+ downloads (Google play store), #11 in Finance (Apple app store), trust wallet is gaining momentum. The token utility is minimal at the time of writing this, but this could change with time. Especially as SFP has done with its initial wallet offerings, Trust wallet could easily pull the same trick and make its token value. Another reason I’m bullish on such wallet tokens because they are not only limited to storing crypto-assets; it is a crypto market ecosystem in itself. Features like staking, swap, coin exchange, and operating as validators for other projects make them valuable in the ecosystem.
Even Google’s trend shows how popular Trust wallet is becoming, saying that it is not a sure-shot investment. The lack of a roadmap creates uncertainty about the founding team’s plans for the platform and TWT. The founder Viktor Radchenko further increased this uncertainty by saying that “Trust Wallet’s Token is about Education”.
Everything looks good related to the Trust wallet, but we can’t ignore how competitive the crypto wallet market is, which is a risk IMO. However, considering Trust wallet (hence TWT token) is a part of the Binance ecosystem, and the distribution was near fair, it possibly has a more significant upside.
Before investing in TWT token, I suggest you get connected with the team on Telegram and as hard-hitting questions related to the future roadmap and revenue stream of the Trust wallet.