- Coinbase launches cbBTC on Solana, allocating $10 million to the protocol and $500,000 in liquidity reserves.
- Amid scrutiny of BitGo's relationship with Justin Solar's BiT International, Coinbase delisted wBTC resulting from itemizing requirements.
- Transparency points and lack of proof of reserves have fueled the talk surrounding Bitcoin-wrapped tokens cbBTC and wBTC.
The battle for supremacy within the Bitcoin wrapped token house has intensified as Coinbase delisted Wrapped Bitcoin (wBTC) whereas supporting its personal product cbBTC.
Coinbase’s cbBTC: Growth to Solana
Coinbase just lately launched cbBTC, a Bitcoin-wrapped token, to the Solana blockchain. This integration will enable customers to ship Bitcoin to Coinbase, obtain cbBTC of their Solana pockets, and commerce inside Solana's ever-growing DeFi protocol.
Additionally learn: Justin Solar explains the bounds of his affect over WBTC
Moreover, Coinbase has allotted $10 million value of cbBTC to the Solana protocol and an extra $500,000 to the buying and selling pool to extend liquidity.
Nevertheless, questions stay about cbBTC's transparency and safety, as cbBTC has been criticized for missing margin certification and auditing processes.
wBTC delisting
Conversely, Wrapped Bitcoin (wBTC), a well-liked token representing Bitcoin on Ethereum and different blockchains, is going through delisting from Coinbase.
Beginning December nineteenth, wBTC buying and selling will likely be suspended throughout Coinbase.com, Coinbase Alternate, and Coinbase Prime, however customers will nonetheless be capable of withdraw their funds. The trade cited “itemizing requirements” as the rationale.
https://twitter.com/CoinbaseAssets/standing/1858921827159945638
The choice comes similtaneously elevated scrutiny of BitGo, the custodian of wBTC, which just lately entered right into a three way partnership with BiT International. The partnership has drawn criticism resulting from Justin Solar's partial possession of BiT International.
BitGo CEO Mike Belshe emphasised that Solar has restricted management over BiT International's operations and that the custodian's keys are managed by a number of events, however the affiliation has is inflicting concern.
Considerations about custodial management and proof of reserves proceed to form the talk surrounding Bitcoin-wrapped tokens. Each wBTC and cbBTC are going through challenges as they search to fulfill the calls for of the cryptocurrency market.
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