- Coinbase launches cbBTC on Solana, allocates $10 million to protocols and $500,000 to liquidity reserves.
- Coinbase Delists wBTC Citing Itemizing Requirements Whereas Investigating BitGo's Ties to Justin Solar's BiT International
- Transparency points and an absence of proof of reserves gasoline the talk over cbBTC and wBTC tokens wrapped in bitcoin.
The battle for dominance within the bitcoin-wrapped token area has intensified as Coinbase permitted its personal product, cbBTC, whereas additionally delisting wrapped bitcoins (wBTC).
cbBTC Coinbase: Extension to Solana
Coinbase just lately launched cbBTC, its bitcoin token for the Solana blockchain. This integration will enable customers to ship Bitcoin to Coinbase, obtain cbBTC into their Solana wallets, and commerce them inside Solana's rising DeFi protocols.
Additionally learn: Justin Solar explains the bounds of his affect on WBTC
As well as, Coinbase allotted $10 million price of cbBTC to Solana protocols and one other $500,000 in buying and selling swimming pools to extend liquidity.
Nonetheless, questions stay about cbBTC's transparency and safety, given criticism of the token's lack of proof of reserves and audit processes.
Elimination of wBTC
Conversely, Wrapped Bitcoin (wBTC), a well-liked token representing Bitcoin on Ethereum and different blockchains, is going through a delisting from Coinbase.
Beginning December nineteenth, wBTC buying and selling will likely be suspended on Coinbase.com, Coinbase Trade and Coinbase Prime, though customers can nonetheless withdraw their funds. The change cited its “itemizing requirements” as the explanation.
https://twitter.com/CoinbaseAssets/standing/1858921827159945638
The choice coincides with growing scrutiny of wBTC's custodian, BitGo, which just lately entered right into a three way partnership with BiT International. The partnership drew criticism on account of Justin Solar's partial possession of BiT International.
Though BitGo CEO Mike Belshe emphasised that Solar has restricted management over BiT International's operations and the custodian keys are managed by a number of events, the affiliation raised issues amongst crypto fanatics.
Custody and proof-of-reserve issues proceed to form the dialogue of bitcoin-wrapped tokens. Each wBTC and cbBTC face challenges as they attempt to meet the calls for of the crypto market.
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