Analysis of the reason for WBTC price spike
Conclusion
The WBTC trading pair on Binance has almost no liquidity, and only about 100 WBTC is enough to crash the market. I believe that this price spike may have been caused by a large holder's WBTC being stolen, and hackers used this low liquidity trading pair for wash trading to launder money. However, the specific situation will need to wait for Binance's announcement tomorrow.
What is WBTC?
As we all know, the DeFi ecosystem mainly occurs on Ethereum, while Bitcoin itself does not have smart contract functionality. So how do we solve this problem? WBTC was born. By pledging BTC 1:1, WBTC is issued on the Ethereum network to increase the capital utilization rate of BTC. In fact, this token has ample liquidity on-chain.
So everyone don't panic too much 😱
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$WBTC