⇘ Wrapped Bitcoin (WBTC) Controversy Follows Coinbase Delisting Announcement
Coinbase has decided to delist Wrapped Bitcoin (wBTC) , citing 'listing concerns'. This decision has resulted in numerous disputes, with Justin...
The news spectrum this week has been dominated by intense activity surrounding Wrapped Bitcoin (WBTC) and the cryptocurrency platform Coinbase. The controversial decision by Coinbase to delist WBTC on December 19 has ignited significant debate within the industry. Driving this action is a connection to controversial figure Justin Sun. As a result, a $1 Billion lawsuit has been initiated by BiT Global, accusing Coinbase of anticompetitive practices and alleging market manipulation.
This has been met by a strong defense from Coinbase, saying it delisted WBTC due to the 'unacceptable risk' posed by Sun. Amidst legal tensions, Trump's World Liberty Financial notably purchased more WBTC ahead of a crucial crypto summit, only to later swap their holdings from Coinbase's Bitcoin to WBTC. Despite the tumultuous landscape, WBTC redemptions have been outpacing minting since BitGo's announcement of custodial changes.
The fallout of these events has led other organizations such as Sky to reconsider their use of WBTC. Significantly, this period of instability has also seen WBTC experience a flash crash on the Binance exchange, sinking briefly to $5K. However, it remains to be seen exactly what the future holds for WBTC.
WBTC Coin News Analytics from Wed, 07 Aug 2024 07:00:00 GMT to Thu, 06 Mar 2025 12:42:00 GMT - Rating -8 - Innovation -4 - Information 8 - Rumor -6