Why is no one talking about this crypto up 227% for the year?

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The top crypto of 2023 is up a stratospheric 227% year-to-date and 96% in the past 30 days. However, before November, no one was talking about it. It was only after the collapse of the FTX market (FTT -1.75%) that Trust Wallet Token (TWT 6.30%) exploded in importance.

The reason is simple: in the wake of FTX, people fear holding cryptos on exchanges, and Trust Wallet Token solves this problem. Trust Wallet Token is the utility and governance token of Trust Wallet, one of the most popular crypto wallets among investors. Instead of storing crypto on a major exchange, you can simply store it on your mobile phone. Given all the drama surrounding FTX and talk of the future of crypto, Trust Wallet Token needs to be on your investment radar.

Trust Wallet compared to other crypto wallets

Of course, Trust Wallet is not the only self-service crypto wallet solution on the market today. For example, if you are an active Coinbase user (COIN -9.18%), you have probably downloaded Coinbase Wallet on your mobile phone. So it’s not like Trust Wallet Token is some kind of exotic crypto – it’s just a crypto you might not have heard of as a casual investor if you don’t use Trust Wallet. Right now, Trust Wallet Token is actually one of the top 50 cryptos in the world by market capitalization.

Image source: Getty Images.

In terms of functionality and overall performance, Trust Wallet gets very high marks. Many blockchain wallets only allow you to send and receive cryptos. Trust Wallet does this one better by letting you trade crypto through an in-app exchange. It has a huge collection of 160,000 cryptos that you can choose from 40 different blockchains. Additionally, Trust Wallet does a good job stripping away all the layers that make crypto complex to understand. Overall, Trust Wallet is secure, free, and able to support many blockchains and cryptos. Trust Wallet is a true “all-purpose” wallet.

The link between Binance and Trust Wallet Token

In order to understand why Trust Wallet Token really took off, you need to know that it has a direct relationship with Binance (BNB -2.66%), which has played a big and controversial role in the ongoing FTX drama. In short, Trust Wallet is Binance’s official crypto wallet. Just as you would probably use Coinbase Wallet if you are a Coinbase customer, you would probably use Trust Wallet if you are a Binance customer.

This would explain why Trust Wallet Token has absolutely exploded onto the scene since early November. Amid all the negative news about FTX, Binance has actively promoted the idea of ​​self-custodial crypto solutions (meaning users hold their own crypto, not the exchange), and it has gave even more prominence to Trust Wallet Token. By purchasing Trust Wallet Token, you align yourself with the idea of ​​self-custody. And, at least indirectly, you also align with Binance.

Is Trust Wallet Token a long-term buy?

Most likely, Trust Wallet Token will continue to benefit from market volatility in the short term. Investors will likely continue to shift their money from struggling cryptocurrency exchanges to self-custodial crypto wallets like Trust Wallet. This will likely put continued upward pressure on the price of the Trust Wallet Token.

In the long term, however, the story is more complex. For one, the “FTX effect” will wear off at some point, so there may be a limited window to profit from Trust Wallet Token. Second, there is currently a lot of fear, uncertainty, and doubt surrounding Binance. Given that Trust Wallet is Binance’s official crypto wallet, this is inconvenient. If at some point people perceive that Binance could become the “next FTX”, what will happen to Trust Wallet Token?

Finally, there is the question of potential competitors. For example, one of the most popular crypto wallets is MetaMask, which has 30 million users worldwide. It doesn’t have a crypto token yet, but there are constant rumors that this token is coming soon. In this case, investors would have a choice between two competing crypto tokens: the Trust Wallet Token and the MetaMask token. Given the immense popularity of MetaMask, this would negatively impact the relative attractiveness of Trust Wallet Token.

For now, I am on Trust Wallet Token as a long term play. That being said, I am optimistic about the concept of self-custody crypto wallets. If you are worried about holding your crypto on exchanges following FTX, then researching which self-custody crypto wallet is right for you is definitely a smart option.

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