↝ Wrapped Bitcoin (WBTC): Shakeups, Mergers, and A Potential Challenger

In a major crypto industry shakeup, the Swiss-based firm 21Shares has launched a wrapped Bitcoin (WBTC) on the Ethereum blockchain named 21BTC, a move that takes aim at the challenges currently being faced by the existing WBTC. Simultaneously, BitGo CEO has defended WBTC, arguing dissenters are not being 'intellectually honest' about their concerns with the product.

BitGo's changes in WBTC custody have stirred controversy, with redemptions outpacing minting. This subsequently led to Defi protocol Threshold proposing a merger to 'save WBTC'. This merger proposal has been viewed as a protective measure against a potential takeover by cryptocurrency entrepreneur Justin Sun.

Coinbase, meanwhile, is proposing its version of WBTC, dubbed cbBTC, aiming to capitalize on the ongoing controversy surrounding BitGo's management of WBTC. With BitGo refocusing on multi-jurisdictional custody, it appears Coinbase's cbBTC could challenge BitGo's WBTC offering within six months. In response, BitGo insists that their WBTC security remains intact, despite mounting concerns.

Mystery surrounds an unknown 'crypto whale' who, despite the controversy surrounding WBTC, has been busily scooping up the coin. Moreover, $71M in WBTC was stolen and spread across multiple wallets only to be later returned after negotiations.

WBTC has also been making inroads with other blockchains, notably expanding to Solana via Wormhole. Yet, concerns persist, particularly after WBTC lost its pegging to Bitcoin on Justin Sun's Poloniex platform, which led to considerable losses for some traders. Ultimately, WBTC's unique selling proposition and future are being significantly impacted by these developments.

WBTC Coin News Analytics from Sat, 19 Sep 2020 07:00:00 GMT to Thu, 05 Sep 2024 12:08:14 GMT - Rating -1 - Innovation 8 - Information 7 - Rumor -2