TRON founder Justin Sun recently announced his participation in the WBTC (Wrapped BTC) project, which has caused widespread heated discussions in the cryptocurrency circle. Sun made it clear on social media that his participation in WBTC is a well-thought-out strategic move to further promote the decentralization of the industry and strengthen support for the application of Bitcoin in the DeFi (decentralized finance) field.
Sun Yuchen emphasized that he personally does not hold the private key of WBTC reserves, so he cannot directly intervene or move any BTC reserves. He highly praised WBTC as an important cornerstone in the DeFi ecosystem and believed that it will continue to play an indispensable role in promoting seamless circulation and value transfer between Bitcoin and other blockchain networks.
WBTC is a token based on the Ethereum ERC-20 standard, which maintains a 1:1 exchange ratio with Bitcoin. Custodians such as BitGo are responsible for the custody of the underlying Bitcoin assets, and the minting and destruction of tokens are realized through smart contracts. Since its launch in 2019, WBTC has become one of the largest Bitcoin DeFi applications, and has established extensive partnerships with many blockchain networks and projects.
Recently, BitGo announced a partnership with BiT Global to advance the WBTC business towards the world's first cross-jurisdictional and cross-institutional custody model. This upgrade not only enhances the security and compliance of WBTC, but also further enhances its recognition and influence around the world. Sun Yuchen was mentioned as one of the individual collaborators, which undoubtedly adds more highlights to this cooperation.
In response to the outside world's attention and discussion, Justin Sun said that there has been no change in the operation of WBTC, and the audit and minting process is still strictly managed by custodians such as BitGo and BitGlobal. He also pointed out that TRON has been committed to promoting the re-decentralization of the Internet since its inception, and achieved full decentralization at the end of 2021, becoming one of the world's leading decentralized organizations.
BitGo CEO Mike Belshe also responded to the discussion, emphasizing that BiT Global, as a licensed custody platform, will strictly comply with regulatory requirements and ensure the safety of customer assets through security measures such as multi-signature mechanisms. He also refuted the rumor that MakerDao removed WBTC, saying that this was just a misunderstanding caused by individual community members' lack of understanding of the operating mechanism of WBTC.
Well-known figures in the cryptocurrency industry have also expressed support for BitGo and WBTC. Jupiter co-founder meow posted on social media that he is confident in BitGo's custody capabilities and believes that they have the best intentions to maintain the security of customer assets.
In summary, Justin Sun’s strategic participation in the WBTC project not only reflects his firm belief and positive attitude towards the future of decentralized finance, but also injects new impetus into the healthy development of WBTC and the entire cryptocurrency industry.
