Binance Is Buying Trust Wallet In Its First Acquisition Deal

Introducing Trust Wallet To The Public

Snapping up the mobile wallet company Trust Wallet, Binance is the world’s largest crypto exchange based on volume making its acquisition. 

The fact is that along with an undisclosed deal, Binance confirmed the compensation to be a mixture of cash, Binance stock, and a portion of the BNB token. Here remaining independent is the US-based Trust Wallet following the deal whereas Binance headquartered in Malta is assisting running the admin side of the business in non-technical areas like marketing. 

According to the CEO of Binance Changpeng Zhao, the Trust Wallet team has shared the same values as the US and the products are very complementary. Also, he adds that for the users who like to withdraw the funds into a wallet now have a product they can use. 

Hence, he explains that they plan to keep the app as independent as possible with more features going into it with not so much from a Binance demand perspective with the addition of a godfather for the baby as there will be some cooperation. 

Coming to be not as well known as wallets such as Imtoken, Delta, or Blockfolio, Trust Wallet is called by Zhao as a diamond in the dirt with strong technical skills. He adds that as they haven’t done much marketing as it is where they can help and are strong technically whereas don’t like doing marketing, HR, etc, merging with them as they don’t have to worry about money.  

Is Making Money A Serious Trouble Faced By Companies?

As indeed money is not a huge issue for Binance these days, the company, therefore, makes a profit in the region of $ 450- $500 million from the very first year of operations as according to the figures from the company it uses 20 percent of the quarterly profits buying back and burning the BNB token. 

Trust Wallet indeed did hold an ICO thereby raising capital as it decided to cancel the sale and return money to the investors. Here the founder of Trust Wallet Viktor Radchenko based in Mountain View explains that the decision was about getting back to developing the app and technology. 

He says he is a product person and developer spending time thinking about solving problems for the end-user as he never liked dealing with investors and the money people as it is so much hassle having resources will help them grow quicker and focus on the adoption for the users that don’t even have wallets. 

Setting his sights on growing the team from five developers right now to 10 Radchenko says the app is currently focused on Ethereum and the Ethereum based tokens with the plan to add support for other blockchains including Bitcoin, EOS, NEO.  

Presenting The Strategies Forward

It comes to be one of a number default wallets that is supported by Binance’s upcoming decentralised exchange, Trust Wallet will remove the shackles of a decentralised exchange allowing users to trade directly with one another. As Zhao explains, the highly anticipated project comes to be active development although he was hesitant to put a date on when it will be ready. 

Likely to be the first of many strategic acquisitions, the Trust Wallet deal for Binance has the company announcing plans for a $1 billion fund as Zhao says that the intention is to make 10-20 investments per year augmenting that with three to four strategic. 

Further on he explains that they were looking for strong tech teams as the acquisition is a very key component continuing to grow and contributing to the industry. He also added that as Binance considers buying companies to accelerate the development of the decentralised exchange, it wasn’t able to identify the right match.

Moving on he states that their requirements are very specific and looking for speed there is no need for fancy smart contracts and didn’t find the right match for the acquisition still very open to someone making an ultra-fast blockchain. 

We Windup The Discussion Here With Promise Of More Info Next Time

As the Trust Wallet banks on the trust of the investors, Binance is found to be the first among the crypto exchanges of the token for such a bold step ahead. There is more information coming on the acquisition. So, we assure you that there will be more strategies to find the investors' trust and confidence. Banking on it, these investors find Binance to be the major funding investment vehicle for the public interested in investing. There is more drama waiting for you on stage.