As a seasoned analyst with over two decades of experience in the financial industry, I have witnessed numerous instances where companies employ strategic maneuvers to gain competitive advantages. In this particular case, it appears that Coinbase’s decision to delist Wrapped Bitcoin (WBTC) could potentially be one such move, aimed at bolstering their own offering, Coinbase Wrapped BTC (cbBTC).
BiT Global claims Coinbase delisted Wrapped Bitcoin (WBTC) to gain a “competitive advantage” for Coinbase’s own Bitcoin (BTC) wrapper, Coinbase Wrapped BTC (cbBTC), the WBTC custodian told CryptoMoon.
On November 19th, Coinbase announced its intention to halt WBTC trading starting from December, due to unspecified issues related to not meeting their criteria for listing digital tokens on their platform.
A representative from BiT Global stated via email to CryptoMoon on November 20th that it appears Coinbase is making a move to outdo competitors by promoting their own version of Bitcoin, cbBTC, and eliminating the dominant rival in WBTC, which may be an effort to gain a strategic edge.
Coinbase explained that the removal of WBTC was due to their routine assessment of whether WBTC is suitable for trading on their platform, not as an attempt to favor cbBTC.
On a regular basis, we scrutinize the assets listed on our platform to make sure they comply with our guidelines. According to our latest assessment, trading for wBTC will be temporarily halted on December 19, 2024, approximately at noon Eastern Time, as announced in a post dated November 19 on our site.
Coinbase was silent when CryptoMoon asked for detailed remarks regarding BiT Global’s assertions.
Coinbase has already discontinued market trading of WBTC and is only facilitating trades in in the form of limit orders. Bitcoin wrappers are tokens representing BTC on other blockchain networks.
According to BiT Global, it’s important for investors to be able to select an asset that aligns with their specific requirements.
“Coinbase has elected to strip investors of their right to make that decision by delisting WBTC to prop their own wrapped Bitcoin option.”
As a researcher, on August 9th, I came across an agreement between BitGo, a cryptocurrency custodian for Wrapped Bitcoin (WBTC), and BiT Global, a Hong Kong-based crypto exchange. According to this arrangement, BiT Global was given partial control over the multisignature wallet that safeguards the custodied Bitcoin.
Justin Sun’s involvement in this announcement has sparked controversy, as some within the ecosystem have voiced worries that his ‘associated projects may indicate potential misuse of collateral,’ according to Threshold, a competitor in the Bitcoin wrapping field, in their statement made in August.
As a researcher examining the digital finance landscape, I can confirm that, according to DefiLlama’s latest data, Wrapped Bitcoin (WBTC) remains the most widely-adopted Bitcoin wrapper. The combined value locked within this platform surpasses an impressive $14 billion.
On September 12th, Coinbase’s rival to WBTC, called cbBTC, has gained significant popularity and is now recognized as one of the top Bitcoin packaging solutions. As per CoinMarketCap, it currently holds approximately $1.5 billion in Total Value Locked (TVL).
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2024-11-21 21:00