As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find the recent decision by Coinbase to suspend trading of Wrapped Bitcoin (WBTC) intriguing. The crypto market is known for its volatility and unexpected turns, but this move seems to be more about standards and transparency than usual price swings.

Coinbase has announced it will temporarily halt trading of Wrapped Bitcoin (WBTC) starting from December, due to unspecified issues related to the token’s failure to comply with Coinbase’s criteria for adding new cryptocurrencies to their exchange platform.

We frequently check the assets listed on our exchange to make sure they adhere to our listing requirements. As per our latest evaluation, trading for wBTC (wBTC) will be halted by Coinbase starting December 19, 2024, around noon ET,” as stated in a November 19 post on the X platform.

Coinbase no longer offers open market trading for WBTC, but instead focuses on processing transactions via limit orders.

Bitcoin (BTC) wrappers are tokens representing BTC on other blockchain networks.

Coinbase has announced that trading activities will temporarily halt on their website (both Simple and Advanced Trade sections), the Coinbase Exchange, and the Coinbase Prime service.

You’ll still be able to access your wBTC funds whenever you need, and there’s no restriction on when you can make a withdrawal.

Coinbase to delist WBTC

Related: Stop panicking about Wrapped Bitcoin — There are other coins

On August 9th, BitGo, a company responsible for safeguarding WBTC’s Bitcoin reserves, consented to give Bit Global, a cryptocurrency exchange based in Hong Kong, some authority over the multi-signature wallet that contains the custody of these Bitcoins.

Justin Sun’s involvement in this announcement has sparked controversy, as some within the community have raised concerns about potential misuse of assets in projects associated with him,” stated Threshold, a competitor in the Bitcoin packaging space, in August.

As reported by DefiLlama, Wrapped Bitcoin (WBTC) remains the top-used Bitcoin wrapper, holding a combined value of over $13 billion.

CryptoMoon was informed that Coinbase found it unexpected and regrettable to withdraw support for Wrapped BTC.

As a dedicated crypto investor, I’ve always strived to offer our community the most compliant, transparent, and truly decentralized Bitcoin tokenization product available, ensuring trust and fairness in every transaction.

“We urge Coinbase to reconsider this decision and continue supporting WBTC trading.”

On September 12th, Coinbase’s rival to WBTC, known as Coinbase Wrapped BTC (cbBTC), has become one of the top choices among Bitcoin wrappers. As of now, it holds approximately $1.4 billion in Total Value Locked, according to CoinMarketCap.

In September, Coinbase faced criticism for appearing less transparent than its rivals in handling Bitcoin wrappers. Additionally, there were baseless whispers that Coinbase was providing unsecured Bitcoin IOUs to BlackRock, a company associated with a crypto exchange-traded fund (ETF).

According to a representative from Coinbase, the company intends to incorporate verified reserve confirmation for cbBTC as of September 30. (CryptoMoon was informed of this plan by the spokesperson.)

2024-11-19 23:58

Related: Stop panicking about Wrapped Bitcoin — There are other coins

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