Binance exchange has made its move and acquired Trust Wallet. The terms of the deal are not yet disclosed, however, the exchange has confirmed that they will compensate a mixture of cash, Binance tokens (BNB), and Binance stock.
— Binance (@binance) July 31, 2018
Binance Exchange and Trust Wallet
Binance, a Malta-based company, is the world’s leading cryptocurrency exchange in terms of volume. The firm already set up the move to expand their operations in majority sectors. The latest achievement was the acquisition of the Trust Wallet.
Trust Wallet is a decentralized wallet service provider, offering digital tokens together with decentralized applications. It is the creator of the eponymous mobile Ethereum wallet, which supports Ether, ERC-20, ERC-721, and ERC-223 tokens.
Binance is the centralized exchange which is currently the world’s second-largest cryptocurrency exchange with the 24 hr. volume of $1.3 billion. On the other hand, Trust Wallet is amongst the countless default wallets supported by the company’s upcoming decentralized exchange. This will surely eliminate the shackles of a decentralized exchange and also allow users to trade directly.
Both the firms, Binance Exchange as Trust Wallet are effectively collaborating to improve their business together. In most of its operations, Trust Wallet is said to remain autonomous, while Binance will co-operate with the administration and focus on marketing development.
Speaking on the acquisition, CEO of the exchange, Changpeng Zhao stated:
“The Trust Wallet team shares the same values as us and the products are very complementary. For users who like to withdraw funds into a wallet now, we have a product they can use.” Zhao also mentioned, “We plan to keep the app as independent as possible. There will be more features going into it but not so much from a Binance demand perspective. We are like the addition of a godfather for the baby… there’ll be some cooperation.”
Minimizing the offloading functions with Binance HQ, the development team of Trust Wallet can precisely focus on their core product offering. They are perhaps dashing their plan to support other Blockchains such as Bitcoin, EOS, and NEO.
What Does the Partnership Say?
In the statement, Zhao says that Trust Wallet may not be as renowned as Delta, Imtoken, or Blockfolio, however, it is a “diamond in the dirt” holding “strong technical skills.”
“They haven’t done much marketing which is where we can help. They are strong technically but don’t like doing marketing, HR etc… now merging with us they don’t have to worry about money.”
Considering the financial status of Binance exchange, they are reaping much profit from their projects. From its first year operations and services, the company gained $450-$500 million. These figures are according to the post, about using 20 percent of its quarterly profits to ‘burn’ BNB token.
Radchenko is now ready to set his sights on improving the team from five developers to 10. The app is currently focusing on Ethereum and ETH based tokens.
The founder of Trust Wallet who is based in Mountain View, Viktor Radchenko says that:
“I’m a product person and developer. I spend my time thinking about solving problems for the end-user. I never liked dealing with investors and money people, it is so much hassle. Having resources will help us grow quicker and so I can focus on adoption for the users that don’t even have wallets.”
This deal is the first strategic acquisitions for Binance. The company has also announced their summer investment plan for $1 billion funds. Zhao’s aim is the intent of 10-20 investments per year, however, also to manage the augment with three to four strategic.
Behind the Scenes
The Trust Wallet acquisition came into existence while the exchange was actively working on developing a decentralized exchange (DEX), entirely on its own public blockchain. There are some platforms that are already allowing users to trade and invest cryptocurrency without asking to entrust their funds to a central custodian authority. Hence, this helps in reducing the risk of hacks and exit scams.
Zhao also mentioned that the effective anticipated project is under “active development”. He has decided that Trust Wallet will be the one to serve the Binance DEX’s default wallets; however, the date is not clear yet when the platform is going live.
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Image Source: Binance