CZ Binance tweeted about how the Trust Wallet provides users with self-custody.
Over the past two weeks, unfolding events have led people to consider decentralized wallets and exchanges over their centralized counterparts.
Coins behind wallets and decentralized exchanges are picking up this week. Trust Wallet (TWT) is up 129%, GMX 55%, and DYDX 70% since the opening of the November 10 candle, according to data from TradingView.
The tweets from Changpeng Zhao, the CEO of Binance, about the Trust Wallet acted as a catalyst for the TWT rally. He tweeted that, “We are not just a CEX. We offer choices. Store crypto yourself? Read this article I wrote 2 years ago. The 15 minutes read will save you money and headache later.”
Collapse of Centralized Exchanges
Events involving FTX unfolded one after another, eventually resulting in the FTX group filing for bankruptcy. Just when the crypto community thought it couldn’t get any worse, the FTX exchange suffered a $400 million hack. The community speculates that it was an inside job.
After the FTX crash, centralized exchanges published their Proof of Reserves to promote transparency. During said announcements, it was discovered that Crypto.com has Shiba Inu as 20% of its reserves.
Before publishing its Proof of Reserves, the exchange withdrew 210 million USDT from Binance and 50 million USDC from Circle. Other than that, several other discoveries led to a 50% tank in the price of CRO, Crypto.com’s native token.
Zhao tweeted that, “If an exchange has to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away.”
Crypto.com is also one of the sponsors of the upcoming 2022 FIFA World Cup, as is FTX, which has spent millions of dollars sponsoring sporting events.
Transition from Centralization to Decentralized Services
During bull markets, users preferred centralized exchanges over decentralized ones due to the easy and convenient user interface (UI). They found DEX unusable due to various complexities present.
The collapse of several centralized exchanges during 2022 has now prompted users to transition to their decentralized counterparts. There is an understanding of the importance of self-custody, and the popular crypto phrase, “It’s not your keys, it’s not your crypto,” says it all. Notable crypto influencers are urging to get cryptocurrencies off exchanges.
There is also a recent rise in the search term ‘crypto wallets’ according to Google Trends data.
To conclude, it is worth considering that TWT will face immediate resistance at $2.6427, which is 2 Fibonacci retracement levels drawn from the March 2022 highs, to the May 2022 lows.
On the other hand, DYDX appears to form a solid double-bottom base. With volume support, a close above the neckline at $2.578 can send the price above the $5 level.
By Audy Castaneda
