The world’s largest Crypto exchange Binance has announced its first ever acquisition on July 31, 2018. Binance has taken over Trust Wallet, a California-based wallet company, making it an official Binance business. The acquisition aims to enhance users safety and give them 100 percent control over their money.
Why Trust Wallet
Trust wallet was launched in November 2017 and has ten employees to carry out its functions. It provides customers with a facility to store more than 20,000 tokens, which are Ethereum-based (ERC20).
It is a decentralized-application browser and crypto wallet provider, which does not access users sensitive information. The wallet may obtain information on users wallet address, contact information and social media details, however, the private keys code access is restricted at users level which enables users to spend their coins the way they like.
Trust Wallet made an announcement highlighting its philosophy, commitment and the next course of action. It is worth reading the news on token sale cancellation made by Trust Wallet on July 10, 2018, on the basis of their observation that no clear laws and interpretation are governing token sale.
Binance hasn’t disclosed the detailed terms of this deal but has a made statement that the compensation of Trust Wallet was provided partly in cash, partly in Binance’s stock and balance in BNB tokens. Binance has shown its excitement over this deal in social media and joined the celebration with the broader public.
The Way Forward
The operations of Trust Wallet will remain independent. Justifying the decision to buy Trust Wallet, Binance commented that:
“The company has built a reputation for security and has held itself to the guiding principles that it will never access user wallets, hold private keys, and ask for personal information, The Trust Wallet brand and team will retain the autonomy and freedom to develop the core product while benefiting from the increased synergy from Binance.”
According to the CEO of Binance, Changpeng Zhao, this acquisition is made for providing customers with more control over the wallets. Now, users can withdraw funds into the wallet as the product is ready. Additionally, Trust Wallet will be allowed to operate independently of Binance’s operational decisions.
Binance, a Malta-based crypto exchange, recently earned a profit of $450-$500 in the region, during its first year of operation. Trust Wallet expressed the hope that finance will not be a hindrance in our growth strategy and the synergy with Binance will of great help.
Trust Wallet is currently supporting ether and Ethereum-based tokens, but in the future, they have plans to add more digital tokens. Zhao mentioned that he is in early talks to explore a few other acquisitions.