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This cryptocurrency plummets as much as 40 percent amid controversy at Binance

Published

2 years ago

20 December 2022

Rédaction Etherdesign

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Key facts:

The Trust Wallet token has dropped from $2.64 to $1.56 in just over a week.
Despite the drop, it remains above the price levels of previous months.

In recent days, the Trust Wallet token has fallen more than 40 percent. This is all amid controversy regarding the exchange Binance, which has been questioned about its financial situation after the FTX collapse and the crisis of confidence now reigning in the cryptocurrency industry.

TWT, a portfolio token that had risen sharply in the wake of the FTX debacle, closed last week in the red, down more than 35 percent. Now, has depreciated another 7 percent this week.. Between last week and this Tuesday, Dec. 20, it fell from $2.64 to $1.56, according to data from CoinMarketCap.

Before the debacle of the past few days, TWT’s stock price was rising rapidly. In a little over a month it rose from $1.17 to $2.64.led by Binance’s chief executive officer Changpeng Zhao, who supported for the use of Trust Wallet for self-depositing cryptocurrency in wallets proper.

TWT price from March. — In the past two weeks, TWT has lost almost everything it had gained since the FTX case. Source: CoinMarketCap.

Despite the recent loss in trading value, TWT remains above the price levels of the months before the FTX collapse. At this time, above the peak reached last March. Also, its current price is three times what it was at the worst time of the year.when it fell below $0.5 last May.

The Trust Wallet token, Binance and the fall of FTX.

The collapse of FTX has called into question the management of users’ funds by the various cryptocurrency platforms. Even the most reliable ones, taking into account that FTX was one of the most reputable exchanges and the one with the largest capitalization and trading volume in the world.

Now, what comes questioned is Binance. Paradoxically, the one who discovered FTX’s liquidity problem, when its CEO announced that they would liquidate their funds in FTT, the FTX token.

Although the CEO of Binance insisted that the financial state of the exchange is optimalthere are those who still are not convinced. It certainly did not help the platform’s image that its financial auditor has discontinued his work with this and other cryptocurrency platforms, as we reported in CryptoNews.