cbBTC Surges Past $1 Billion as Coinbase Ends WBTC Support
Coinbase, the largest cryptocurrency exchange in the United States, announced that it will suspend Wrapped Bitcoin trading (World Bitcoin Exchange) at approximately 12:00 noon Eastern Time on December 19, 2024.
The decision was revealed in a post on X (formerly Twitter), which cited routine reviews of its listed assets to ensure compliance with listing standards.
Coinbase steers clear of WBTC amid cbBTC boom
Suspension applies to both parties Coinbase Exchange and Coinbase Prime. Although trading will cease, WBTC holders will retain full access to their funds and the ability to withdraw funds at any time. In preparation for the transition, Coinbase has moved WBTC trading to a limit-only mode, where users can place and cancel limit orders while matches are still possible.
“Coinbase will suspend WBTC (WBTC) trading on December 19, 2024 at approximately 12:00 PM ET. You will still have access to your WBTC funds, and you will continue to be able to withdraw funds at any time. We have transitioned the WBTC order book to Limit Mode. Limit orders can be placed and canceled, and matches may occur on Coinbase. Detailed.
Coinbase’s move to suspend WBTC comes amid the rapid success of its wrapped Bitcoin token, cbBTC. recent, cbBTC market value exceeds US$1 billionreflecting the growing adoption and trust within the cryptocurrency community. This milestone further solidifies cbBTC’s position as a strong competitor to WBTC in the decentralized finance space (Decentralized Finance) space.
As of this writing, data dune It shows that the market value of cbBTC has increased to US$1.44 billion. CBTC’s native availability on the network, e.g. SolanaEthereum and Base have significantly expanded their accessibility, Decide is the latest addition.
“cbBTC is listed on Arbitrum. cbBTC is an ERC-20 token backed 1:1 by Bitcoin (BTC) held by Coinbase. It is natively available on Arbitrum and is available to the entire Ethereum Safely accessible to more users in the ecosystem.” shared Tuesday.
In addition, the famous DeFi protocol Aave’s version 3 (V3) platform targets cbBTCenhancing its utility in the ecosystem. This growing momentum may have played a key role in Coinbase’s decision to phase out WBTC trading.
WBTC core team urges Coinbase to reconsider
The team behind Wrapped Bitcoin expressed regret and surprise at Coinbase’s decision. In a statement from X, the WBTC core team emphasized its commitment to compliance, transparency, and decentralization.
“We are regretful and surprised by Coinbase’s decision to delist WBTC… We urge Coinbase to reconsider this decision and continue to support WBTC trading,” the team explain.
The statement outlines WBTC’s long-standing reputation for novel mechanisms, regulatory compliance, and decentralized governance. WBTC emphasizes its seamless integration with DeFi protocols, describing itself as an important liquidity solution for Bitcoin users. WBTC urged Coinbase to reconsider and reiterated its willingness to address any concerns or provide more information to support its claims.
Meanwhile, Coinbase’s announcement sparked mixed reactions in the crypto community. Some users criticized the exchange, saying the decision reflected its inability to cope with competition.
“Coinbase can’t handle fair competition?? WBTC is better than cbBTC” explain Galli Sama in the post.
Still, others supported the move, citing concerns about WBTC’s custody model, with one user mentioning BitGo recently adopted a multi-jurisdictional custody system.
“You gave custody to a liar. What did you think would happen? User expressive.
This criticism is consistent with Concerns are growing over Justin Sun’s involvement in WBTC custody As BeInCrypto recently reported. Some users are preemptively trying to avoid potential risks, and one commenter shared their reservations.
“When Sun added WBTC’s multisig, I sent all the WBTC on the OP to Coinbase and exchanged it for real BTC and then withdrew it to my hardware wallet… You just confirmed to me that I made the right move,” they wrote.
The decision to suspend WBTC trading could mark a critical moment in the race among packaged Bitcoin solutions. While cbBTC’s integration across multiple blockchain networks is gaining momentum, skepticism surrounding WBTC’s custody model and leadership is growing.
Justin Sun spoke out Criticism of Coinbase’s cbBTC strategylabeling it a setback for Bitcoin’s wider adoption. As the debate continues, the industry is closely watching whether Coinbase’s cbBTC will solidify its dominance, or whether World Bitcoin Exchange can regain its position as the leading wrapped Bitcoin solution. Regardless, the changing dynamics reflect the importance of transparency, governance, and community trust in shaping the future of DeFi.
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