Coinbase, the biggest US-based crypto trade, has introduced it would droop buying and selling for Wrapped Bitcoin (WBTC) on December 19, 2024, at roughly 12 p.m. ET.
The choice, revealed in a publish on X (previously Twitter), cites a routine assessment of its listed property to make sure compliance with itemizing requirements.
Coinbase Sidesteps WBTC Amid cbBTC Growth
The suspension will apply to each Coinbase Alternate and Coinbase Prime. Though buying and selling will stop, WBTC holders will retain full entry to their funds and the flexibility to withdraw them at any time. In preparation for the transition, Coinbase has moved WBTC buying and selling to a limit-only mode, the place customers can place and cancel restrict orders whereas matches should happen.
“Coinbase will suspend trading for WBTC (WBTC) on December 19, 2024, at or around 12 pm ET. Your WBTC funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time. We have moved our WBTC order books to limit-only mode. Limit orders can be placed and canceled, and matches may occur,” Coinbase detailed.
Coinbase’s transfer to droop WBTC comes amid the speedy success of its wrapped Bitcoin token, cbBTC. Lately, cbBTC surpassed a $1 billion market capitalization, reflecting rising adoption and belief throughout the crypto neighborhood. This milestone has additional cemented cbBTC’s place as a powerful competitor to WBTC within the decentralized finance (DeFi) house.
As of this writing, knowledge on Dune reveals that cbBTC market capitalization has elevated to $1.44 billion. CBTC’s native availability on networks like Solana, Ethereum, and Base has considerably expanded its accessibility, with Arbitrum being the most recent addition.
“cbBTC is live on Arbitrum. cbBTC is an ERC-20 token that is backed 1:1 by Bitcoin (BTC) held by Coinbase. It is natively available on Arbitrum and securely accessible to more users across the Ethereum ecosystem,” Coinbase shared on Tuesday.
Moreover, outstanding DeFi protocol Aave is concentrating on cbBTC for its Model 3 (V3) platform, enhancing its utility throughout the ecosystem. This rising momentum might have performed a key function in Coinbase’s choice to section out WBTC buying and selling.
WBTC Core Workforce Urge Coinbase to Rethink
The workforce behind Wrapped Bitcoin expressed remorse and shock at Coinbase’s choice. In a press release on X, WBTC’s core workforce emphasised its dedication to compliance, transparency, and decentralization.
“We regret and are surprised by Coinbase’s decision to delist WBTC…We urge Coinbase to reconsider this decision and continue supporting WBTC trading,” the workforce mentioned.
The assertion outlined WBTC’s longstanding popularity for novel mechanisms, regulatory compliance, and decentralized governance. Highlighting its seamless integration with DeFi protocols, WBTC described itself as an important liquidity resolution for Bitcoin customers. Urging Coinbase to rethink, WBTC reaffirmed its readiness to handle any considerations or present further info to help its case.
In the meantime, Coinbase’s announcement has sparked blended reactions throughout the crypto neighborhood. Some customers criticized the trade, suggesting the choice displays an lack of ability to deal with competitors.
“Coinbase can’t handle fair competition?? WBTC superior to cbBTC” mentioned Gally Sama in a publish.
However, others help the transfer, citing considerations over WBTC’s custody mannequin, with one consumer referencing BitGo’s latest adoption of a multi-jurisdictional custody system.
“You put custody in the hands of a fraud. What did you think was gonna happen?” the consumer expressed.
This critique aligns with rising fears about Justin Solar’s involvement in WBTC’s custody processes, as BeInCrypto reported not too long ago. Some customers have acted preemptively to keep away from potential dangers, with one commenter sharing their reservations.
“When Sun got on the multisig for WBTC, I sent all my WBTC on OP to Coinbase and exchanged for true BTC that I withdrew to my hardware wallet… You gave me confirmation just now that I made the right move,” they wrote.
The choice to droop WBTC buying and selling may mark a pivotal second within the competitors between wrapped Bitcoin options. Whereas cbBTC’s integration throughout a number of blockchain networks has gained momentum, skepticism surrounding WBTC’s custody mannequin and management has intensified.
Justin Solar has voiced criticism of Coinbase’s cbBTC technique, labeling it a setback for Bitcoin’s broader adoption. As the controversy continues, the business watches intently to see whether or not Coinbase’s cbBTC will solidify its dominance or if WBTC can regain its place as a number one wrapped Bitcoin resolution. Regardless, the shifting dynamics mirror the significance of transparency, governance, and neighborhood belief in shaping the way forward for DeFi.
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