Trust Wallet: User Growth in Developing Regions
Trust Wallet, a decentralized crypto wallet supported by former binance CEO CZ (Changpeng Zhao), is witnessing a substantial increase in users, particularly in regions like Africa and South Asia. These areas are experiencing a surge in interest as individuals look for access to stablecoins such as USDC for financial security and stability, according to Eowyn Chen, the CEO of Trust Wallet.
During Korea Blockchain Week 2024, Chen shared insights on this emerging trend and the broader dynamics of the cryptocurrency market. Despite CZ's departure from binance and a brief stint in prison, Trust Wallet continues to receive backing from him. The platform has been maintaining a consistent rate of 1-2 million user downloads per week, emphasizing the growing demand for on-chain wallets in regions where traditional financial systems may not be as stable or accessible.
Stablecoins Help Users to Protect Wealth From Inflation
In emerging markets where banking infrastructure may be underdeveloped, crypto wallets play a crucial role in enabling users to manage their finances independently of traditional financial institutions. Stablecoins, which are pegged to the US dollar, offer users a means to safeguard their wealth from inflation and currency devaluation.
South Korean Market Engaged in DeFi, FOMO-Driven
Focusing on the South Korean market, Chen highlighted the active involvement of local users in cryptocurrency trading and decentralized finance (DeFi). However, she pointed out that regulatory constraints and market dynamics pose challenges to widespread adoption in the region.
Korea stands as a competitive market with strong demand for local language support, user interface and experience optimization, and high-risk, high-reward investment opportunities. It is also characterized by a fear of missing out (FOMO) mentality, where launches by local companies can drive broader adoption.
If major telecom companies in South Korea like SK Telecom collaborate with blockchain firms such as Aptos to introduce their own wallets, it could trigger significant interest in wallet-as-a-service (WaaS) offerings, thereby reshaping the market landscape.
Many Korean Firms Struggling to Integrate web3 Solutions
While recognizing the significance of web3 wallets, David Kim, a senior smart contract engineer at Trust Wallet, noted that many Korean corporations are in the initial stages of formulating strategies to integrate decentralized technologies effectively into their existing services. Collaborations between companies like Ahn Lab and SK Telecom aim to offer appealing web3 solutions to users, accelerating the adoption of decentralized technologies in South Korea.
South Korean web3 Market CEX-Focused
Kim highlighted that the South Korean web3 market is predominantly focused on centralized exchanges (CEX), with a majority of retail users' funds concentrated in CEXs rather than the DeFi sector. Panel discussions during KBW2023 shed light on major corporations like SK Telecom and Aptos discussing their strategies for web3 adoption.
Institutions in South Korea are increasingly engaging with web3, indicating a shift towards a more serious approach compared to previous years. The approval of bitcoin and ethereum exchange-traded funds (ETFs) in the U.S. market may have played a role in stimulating this heightened interest in decentralized technologies in South Korea.
