The major crypto exchange Binance is again in the news – this time for making its first public acquisition. The exchange has bought Trust Wallet in a public acquisition.
As the announcement on July 31st read, the Binance decided to buy the US-based Trust Wallet which launched in 2017. The wallet is described as open source, anonymous and decentralized – supporting Ethereum and over 20,000 different Ethereum-based tokens (including ERC20, ERC223, and ERC721).
Even though the details of the acquisition are not yet disclosed, Binance spoke to TechCrunch and told them that it paid a mixture of fiat money, Binance stocks as well as its own BNB token. Right now, Trust Wallet is planned to remain autonomous in most of its operations – and Binance will handle all the administrative and marketing tasks.
The CEO of Binance, Changpeng ‘CZ’ Zhao also noted that Trust Wallet is a strong team when it comes to its technical knowledge but still needs assistance with its marketing strategy. As he stated:
“They haven’t done much marketing which is where we can help. They are strong technically but don’t like doing marketing, HR etc… now merging with us they don’t have to worry about money.”
Right now, Binance plans to list Trust Wallet as the default wallet on the highly-anticipated Binance decentralized exchange. Zhao is confident that Binance is considering further acquisitions, stating:
“We’re looking for strong tech teams. Acquisition will be a very key component to continuing to grow and contributing to this industry.”
The founder of Trust Wallet, Viktor Radchenko, also sees this as a major opportunity to return to focusing on developing the app and the technology powering it. According to him, “Having resources will help us grow quicker and so I can focus on adoption for the users that don’t even have wallets.”
Meanwhile, the Malta-based Binance remains the second largest cryptocurrency exchange by trade volume – with more than $300 million in revenue by July this year – and with a target of $1 billion in revenue by the end of this year.
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