Justin Sun Criticizes cbBTC: Key Risks for Investors
1. cbBTC lacks proof of reserve, which raises concerns about its financial stability and transparency.
2. The platform does not have independent auditing, suggesting inadequate oversight and higher risk.
3. Sun noted that cbBTC can freeze user balances at any time, potentially affecting liquidity and access to funds.
4. He warned that a U.S. government subpoena could lead to the seizure of all Bitcoin holdings on cbBTC, highlighting the dangers of centralization.
5. Sun's concerns reflect broader issues with centralization in the crypto space, similar to risks seen with traditional banks.
Sun advises investors to be cautious and well-informed due to these potential risks.
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