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- Coinbase launches cbBTC on Solana, allocating $10M to protocols and $500K for liquidity reserves.
- Coinbase delists wBTC citing itemizing requirements amid scrutiny over BitGo’s ties to Justin Solar’s BiT World.
- Transparency points and lack of proof-of-reserves gasoline debate over Bitcoin-wrapped tokens cbBTC and wBTC.
The battle for dominance within the Bitcoin-wrapped token area intensified as Coinbase endorsed its personal product, cbBTC, whereas delisting Wrapped Bitcoin (wBTC).
Coinbase’s cbBTC: Increasing to Solana
Coinbase just lately launched cbBTC, its Bitcoin-wrapped token to the Solana blockchain. This integration will enable customers to ship Bitcoin to Coinbase, obtain cbBTC of their Solana wallets, and commerce it inside Solana’s rising DeFi protocols.
Learn additionally : Justin Solar Explains the Limits of His Affect on WBTC
Moreover, Coinbase allotted $10 million value of cbBTC to Solana protocols and a further $500,000 in buying and selling swimming pools to extend liquidity.
Nevertheless, questions stay in regards to the transparency and safety of cbBTC, given criticisms of the token’s lack of proof-of-reserves and audit processes.
wBTC Delisting
Conversely, Wrapped Bitcoin (wBTC), a preferred token representing Bitcoin on Ethereum and different blockchains, is dealing with delisting from Coinbase.
Beginning December 19, buying and selling for wBTC shall be suspended throughout Coinbase.com, Coinbase Change, and Coinbase Prime, though customers can nonetheless withdraw their funds. The alternate cited its “itemizing requirements” as the explanation.
https://twitter.com/CoinbaseAssets/standing/1858921827159945638
This choice coincides with rising scrutiny of wBTC’s custodian, BitGo, which just lately entered a three way partnership with BiT World. The partnership has drawn criticism as a result of BiT World’s partial possession by Justin Solar.
Though BitGo CEO Mike Belshe emphasised that Solar has restricted management over BiT World’s operations and the custodian’s keys are managed by a number of events, the affiliation has raised issues amongst crypto lovers.
Issues over custodial management and proof-of-reserves proceed to form the dialogue round Bitcoin-wrapped tokens. Each wBTC and cbBTC face challenges as they attempt to satisfy the calls for within the crypto market.
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