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Dwelling » DeFi » Coinbase Wrapped Bitcoin hits $100M market cap
by
Vivian Nguyen
Business Nansen CEO notes Coinbase holds 36% of cbBTC provide, Wintermute is among top holders.
Key Takeaways
- Coinbase’s cbBTC exceeds $100M market cap one day after its initiate.
- TRON founder Justin Sun criticized cbBTC for lack of audits and centralization dangers.
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Coinbase’s unique wrapped Bitcoin token, cbBTC, has reached a market capitalization of $100 million following its debut on Ethereum and Inferior, in line with files from Dune Analytics.
Coinbase Wrapped Bitcoin now has a circulating provide of 1,720 tokens, with about 42% on Inferior and round 58% on Ethereum, files presentations.
Launched on Thursday, cbBTC is piece of Coinbase’s ongoing efforts to enhance Bitcoin’s utility in DeFi applications. The unique token competes without prolong with BitGo’s WBTC, which is for the time being essentially the most broadly aged DeFi-esteem minded model of Bitcoin.
In a observation following Coinbase’s trace on the wrapped Bitcoin initiate, Dan Elitzer, co-founding father of Nascent, suggested that cbBTC would be a strategic switch for Coinbase. Elitzer predicted it would possibly perchance well maybe also surpass BitGo’s WBTC provide within six months.
At initiate, Coinbase’s unique token also bought decided feedback from industry specialists, seriously for its probably to boost DeFi actions on Inferior, Coinbase’s layer 2 community.
Moonwell’s DeFi contributor Luke Youngblood said that the fungibility of cbBTC on Coinbase will enable retail and institutional holdings of Bitcoin to seamlessly combine with its on-chain ecosystem.
Nansen CEO Alex Svanevik infamous Coinbase for the time being holds about 36% of the provide, while market maker Wintermute is among the end holders. Svanevik predicted the token would seriously elevate Inferior’s entire resources through its instant adoption.
“This would maybe also explode entire resources on [Base] relatively snappily,” Svanevik said. “Well-organized switch. Looks to be like esteem Wintermute is the #1 market maker for it. Will likely be a solid enterprise for them.”
Nonetheless, no longer each person is happy. TRON founder Justin Sun expressed skepticism about the token’s lack of Proof of Reserve audits and the capability for presidency intervention. He argued that cbBTC would possibly perchance well also pose security dangers to DeFi protocols and undermine decentralization.
“…integrating cbbtc will pose fundamental security dangers to decentralized finance. A single authorities subpoena would possibly perchance well also freeze on-chain Bitcoin straight, making decentralization a comic fable,” Sun infamous.
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