The American cryptocurrency exchange Coinbase announced today (20th) that wBTC (Wrapped Bitcoin) will be delisted from the platform starting from December 19. As the largest Bitcoin tokenized asset by market value, wBTC plays an important role in Ethereum and other blockchains. The above news caused market shock.
Coinbase said on social media platform wBTC transactions."
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on December 19, 2024, on or around 12pm ET.
— Coinbase Assets (@CoinbaseAssets) November 19, 2024
According to Coinbase, wBTC will be delisted from all trading modes on the platform, including Simple, Advanced Trade, Coinbase Exchange, and Coinbase Prime, but users will still be able to transfer wBTC to other wallets after trading is stopped.
Currently, wBTC’s order book has been switched to a limit-only trading mode, allowing users to place or cancel limit orders.
In response to the above news, the wBTC team issued a statement saying that it was regretful and surprised by Coinbase’s decision. The team emphasized that wBTC has always taken compliance, transparency and decentralization as its core principles to provide users with efficient Bitcoin liquidity solutions, while seamlessly integrating with multiple DeFi protocols, making an important contribution to the development of the ecosystem.
The wBTC team also called on Coinbase to reconsider the decision and expressed its willingness to provide more information to resolve any potential issues.
We regret and are surprised by Coinbase’s decision to delist WBTC. As the core team behind Wrapped BTC, we have always been committed to providing the community with the most compliant, transparent, and decentralized BTC tokenization product.
Over the years, WBTC has established…
— WBTC (@WrappedBTC) November 19, 2024
Sun Yuchen's expansion of influence causes controversy? wBTC ushered in an important turning point
Coinbase’s decision to delist wBTC comes as TRON founder Justin Sun’s influence in the wBTC protocol is gradually expanding. BitGo, the main custodian of wBTC, recently reached a cooperation agreement with Hong Kong-based BiT Global, which has the background support of Justin Sun, to further establish a joint venture.
Launched in January 2019, wBTC aims to provide more liquidity to Bitcoin and integrate it into the broader cryptocurrency ecosystem. Each wBTC is backed 1:1 by Bitcoin and is tied to the price of Bitcoin, which currently has a market cap of over $13.6 billion.
BitGo has long served as wBTC’s primary custodian, responsible for managing the Bitcoin assets that support wBTC. In August this year, the company announced that it would disperse custody rights among three entities to increase geo-resiliency, including BiT Global, which is associated with Justin Sun.
The rise of own token cbBTC
BitGo’s cooperation with Justin Sun and the TRON ecosystem has caused concerns in the industry, partly due to Sun’s controversial role in the cryptocurrency circle in the past. For example, stablecoin issuer MakerDAO has voted to restrict the use of wBTC as collateral to mint its stablecoin DAI, while decentralized lending platform Aave said it would closely monitor developments.
At the same time, Coinbase has launched its own version of Bitcoin's tokenized asset - cbBTC. Since its launch, the market value has grown rapidly, reaching nearly $1.5 billion in just a few months, becoming a potential competitor to wBTC.
Coinbase’s move to delist wBTC not only marks a profound change in the market, but also reveals a new pattern of competition and power distribution within the cryptocurrency industry. In the future, as Justin Sun's influence in the agreement gradually expands, the market's reaction to this deserves continued attention.
"The expansion of Justin Sun's influence has caused controversy? Coinbase announced the delisting of wBTC." This article was first published on (Block Guest).
