Coinbase set to delist Wrapped Bitcoin (WBTC)

Olumide Adesina•Wednesday, November 20, 2024•2 min read

Coinbase has declared its intention to delist Wrapped Bitcoin (WBTC), stating that it no longer satisfies the exchange’s listing requirements as of its “most recent review.”. This will take effect on December 19. The Coinbase Wrapped Bitcoin (cbBTC) token, introduced as a rival to this one, has angered Justin Sun, a charge of WBTC custody.

What is Wrapped Bitcoin (WBTC)

Wrapped Bitcoin (WBTC) is a tokenized form of Bitcoin (BTC) that operates on the blockchain. It complies with the Ethereum blockchain’s core compatibility standard, ERC-20. This compatibility allows WBTC to be completely integrated into the Ethereum ecosystem as crypto lending services, and other DeFi applications that are compatible with ERC-20.

WBTC is backed 1:1 by Bitcoin via a network of custodians and merchants are automated. This will guarantee that its price is fixed to that of Bitcoin and enable users to move money between the BTC and ETH networks in a decentralized and independent way.

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The tokenized bitcoin space has been undergoing significant upheaval since BitGo revealed in August that it was establishing a new joint venture with Justin Sun and BiT Global to oversee the custody of WBTC.

Coinbase and Kraken have launched tokenized competitors because of Sun’s involvement, which has caused significant industry outrage. Additionally, it led to a disastrous plan by Threshold Network to purchase the token. The introduction of these rivals has also prompted Sun to attack cbBTC, asserting that Coinbase’s inability to finish a proof of reserves procedure is proof that the exchange is “unable to meet the requirements.”.

Notably, Sun-owned Poloniex has never finished a proof-of-reserves procedure and runs a tokenized version of Bitcoin on Tron that is significantly bigger than cbBTC.

More than half of all bitcoin on Sun-advised HTX is also Poloniex bitcoin on Tron. Coinbase has now determined that the modifications to WBTC are so substantial that they no longer satisfy Coinbase’s requirements.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.