Binance has made its first acquisition with the mobile Ethereum wallet - Trust Wallet. Trust Wallet will remain independent even after the deal, but Binance, which is headquartered in Malta, will assist in the admin side of the business and even in non-technical aspects like marketing.
Before going into the intricate details of this acquisition, let's know Binance and Trust individually.
Binance is originated from two words- Binary and Finance, which is headquartered in Malta, led by a very strong team, who has experience in crypto finance and wall street. The underlying Binance platform has been deployed on more than 30 exchanges like CoinSwitch, where it supports all devices and multiple languages, offering a seamless user experience.
Trust Wallet is one of the most secure mobile wallet, where the private key can be stored locally and compatible with ERC20 and ERC223 tokens. It is an open source platform which keeps your personal information safe. Its partnered with Kyber network which enables you to trade instantly on the decentralized exchange. It is available for both ios and android versions.
The acquisition will allow Binance to add a mobile wallet to its services, while Trust Wallet will be able to tap into the advantages offered by the exchange, including both its existing user base and a proposed decentralized exchange, according to a press release. Even if it got acquired, Trust wallet would continue operating anonymously.
Trust Wallet may not be as well known as Imtoken, Delta, or Blockfolio, but Binance CEO Changpeng “CZ” Zhao called the company a “diamond in the dirt” with “strong technical skills.”
Binance made a profit of around $450-$500 million from its first year of operations. That’s according to figures from the company, which uses 20 percent of its quarterly profits to buy back and ‘burn’ its BNB token.
Trust Wallet is founded by Viktor Radchenko, who is now setting his sights on growing the team from five developers right now to 10 so that they can add support for other blockchains including Bitcoin, EOS, NEO. Trust Wallet will also be one of the best default wallets which will remove the shackles of a decentralized exchange and allow users to trade directly with one another.
The Trust Wallet deal is one of the initial strategic decisions taken by Binance where Zhao expressed his opinion that he believes Acquisition will be a key component which will help in continual growth and contribution to this industry.
The main reason for their acquisition is the similar approach in security and user management, and that the platform does not request user data or other private information.
This is going to prove one of the significant acquisitions in the crypto world.
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