TrustWallet’s native token (TWT) fell 7% after Binance, the exchange that acquired TrustWallet in 2018, released its own competing Web3 wallet.
The token is currently trading at $1.49, dropping 7% over the past 24 hours, according to CoinMarketCap.
The wallet was acquired by Binance in 2018 in a deal that included a mixture of cash, Binance stock and a portion of BNB tokens, according to TechCrunch. The value of BNB in July 2018 was $14.80, now trading at $244.
TrustWallet is a product that lets users store and use cryptocurrencies across the decentralized finance (DeFi) ecosystem. Binance’s newly unveiled wallet is very similar; it will work across 30 different blockchains and can be used for staking, lending and borrowing.
One difference, however, is that the new wallet is only accessible via the platform’s native app, which could be restrictive to users who don’t have or don’t want to sign up for a Binance exchange account.
TWT token experienced a positive week before Binance’s release, rising by more than 60% since last Wednesday. Five days ago, Binance announced the listing of TWT futures on its exchange, which saw its daily volume increase from $80 million to around $476 million on Monday.
When asked what role TrustWallet will have alongside the release of Binance’s wallet, a Binance spokesperson did not immediately respond.