Trust Wallet (TWT) surged ~90%, after CZ’s tweet amid FTX crisis
Cryptocurrencies across the board fell as the impact of FTX going bankrupt rippled throughout the industry – including tokens related to self-custodial wallets. This trend reversed when Changpeng Zhao, more commonly known as CZ, the CEO of Binance, tweeted about Trust Wallet on November 12, 2022.
Trust Wallet is a free, decentralized and non-custodial (or self-custodial) hot wallet that allows users to store cryptocurrency and non-fungible tokens (NFT), and is compatible with several blockchains. Its native token TWT saw its price increase sharply after, with gains peaking at 94% between November 12 to 21, 2022.
Trust Wallet was acquired by Binance in 2018.
SafePal (SFP) and other wallet tokens also appreciated in value
Similarly, SafePal, which has Binance as one of its investors, saw its SFP token appreciate in value, peaking at 129% in price gains. Other wallet tokens with smaller market caps like Coin98 (C98), TokenPocket (TPT) and XDEFI (XDEFI) similarly saw significant price increases as well, after a buying frenzy was sparked. TPT and XDEFI saw large gains, peaking at 34% and 109% respectively between the same time period from November 12 to 21, 2022.
A short lived momentum - month-to-date performance of wallet tokens remains subpar
While tokens associated with self-custody wallets saw spectacular price gains between November 12 to 21, its upward momentum is short lived. Month-to-date (MTD) performance is average, with Trust Wallet making the most headway with a 57% price rise MTD, followed by SafePal and TokenPocket at 31% and 29% respectively. XDEFI broke even and stands at a 2% price return, while Coin98 dipped -26%.
Methodology
Price returns of five tokens associated with self-custodial wallets of differing market caps (Trust Wallet, SafePal, TokenPocket, XDEFI and Coin98) on CoinGecko, from November 1 to 22, 2022.
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Curious to find out more about our previous research studies? Check out this one we did on FTT’s market cap and token price after FTX’s collapse.
Shaun is a Research Analyst at CoinGecko, who has lived and breathed crypto since 2017. Previously a community manager for Synthetix and RedFOX, he dived down the crypto rabbit hole to grasp a better understanding of the industry. He now spends copious amounts of time on Crypto Twitter and Telegram, searching for the next idea for CoinGecko Research. Follow the author on Twitter @ShaunPaulLee
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