Binance Exchange CEO Reaffirms Faith In TrustWallet
The Binance exchange has been the source of both significant controversy and massive praise in the past year. On one hand, a host of security issues have garnered a somewhat negative reputation among some users, who have experienced hacked accounts, stolen coins, and a slow-to-warm customer support service. But to the other end, Binance is still hailed as one of the most user-friendly and expansive cryptocurrency exchanges currently available—especially to citizens of the United States.
In an effort to address some of the more pertinent security concerns levied against the trading platform, Binance recently endorsed an off-site wallet called TrustWallet. TrustWallet is an on-chain wallet, meaning that it operates on the existing blockchain. But the cause of decentralization is one element which experts believe may offer the kind of added security that cryptocurrency traders on the site might want to see.
In the past, security experts have consistently warned against holding cryptocurrency coins on Binance directly. A slew of hackings, thefts, and security breaches have substantiated the claim that Binance’s site is just not a good place to store coins, especially in the long term. For security-oriented users on Binance, an off-site wallet is a powerful solution to a dangerous problem.
Binance And TrustWallet
Over one month ago, Binance executed its first effective acquisition of another company, gaining access to majority control over TrustWallet. Partly as a direct response to the security-based critiques of some developers and members of the cryptocurrency community, the partnership created significant buzz within the crypto space almost immediately.
TrustWallet allows its users to store a significant amount of financial data—over 20,000 unique tokens to be exact. Its biggest feature comes from the security offered by the decentralized application. Under the TrustWallet paradigm, officials say that users have “100 percent control” over their funds within the wallet.
This does not mean that Binance will not continue to allow users to hold their funds on the Binance website. But according to the company’s CEO, this move will give clients the choice of having their funds stored on either a centralized server or on a decentralized ledger.
Trust Wallet Features
The main support for the wallet itself has come in the form of direct endorsements online by Binance exchange’s CEO, Changpeng Zhao. Zhao released a video earlier this year espousing his support for the new wallet setup, saying that the wallet’s simple user interface and convenient mobile application makes it easier than ever for users to easily and safely manage their tokens.
In many ways, though, it seems that the TrustWallet pitch is similar to the draw of the original Binance exchange. Binance is renowned for its user-friendly interface and relatively short learning curve for new investors. But readers should remember that this very user-friendliness might be part of the cause behind the security concerns that the company is now attempting to address. Zhao continues to try to sell Binance’s customers on trusting the TrustWallet, but only time will tell if the dApp lives up to its name and earns the support of Binance’s large client-base.