Trust Wallet (TWT) Token Suddenly Dumps 20%, Here’s Why

TWT, the native token behind Trust Wallet, a self-custodial crypto wallet, fell over 23% from its all-time high of $2.72 reached on Dec. 11.

The current drop could be attributed to profit-taking by investors and ongoing concerns on the crypto market in the aftermath of the FTX collapse. Crypto investors also received news of the arrest of its former CEO, Sam Bankman-Fried.

Trust Wallet had ridden the FTX fall to all-time highs in November, outperforming several other cryptocurrencies. Binance CEO Changpeng Zhao advocated for self-custody and encouraged consumers to adopt Trust Wallet, which fueled the token’s rise. Binance acquired Trust Wallet in 2018.

However, current concerns about the Binance crypto exchange are not benefiting related tokens like TWT.

At the time of publication, TWT was down 10.54% at $2.10, and Binance’s BNB token was likewise down 5% at $266.

Binance has been in the news, experiencing a surge in withdrawals due to concerns regarding its proof-of-reserves report.

Withdrawals on the crypto exchange have hit $1.6 million in the last 24 hours, as reported by U.Today.

Investors considered a report from Reuters that U.S. Department of Justice investigators might launch a probe into Binance. “Reuters has it wrong again,” Binance remarked.

“We don’t have any insight into the inner workings of the U.S. Justice Department, nor would it be appropriate for us to comment if we did,” the business stated in a tweet.

In a tweet, Changpeng Zhao, the company’s founder and CEO, told his followers to “ignore the FUD.”