Source: Chain News
Coinbase delisted wBTC (Wrapped Bitcoin Price) in November, and the issuer $wBTC, BIT Global Digital Limited, subsequently filed a lawsuit against Coinbase, accusing the exchange of favoring its own issued 'analog Bitcoin' $cbBTC and engaging in commercial monopolization.
In its defense submitted to the court, Coinbase claims that the exchange has the right to delist any cryptocurrency, while the representative lawyer of the $wBTC issuer stated that the 'centralized exchange' Coinbase is similar to Microsoft copying Netscape's free browser and monopolizing the market.
Coinbase and Justin Sun go head-to-head
Coinbase's defense points out that many companies in the industry are questioning due to Mr. Sun's involvement with wBTC. Coinbase responded in its defense that the decision to delist wBTC was due to Justin Sun, the founder of Tron, and pointed out that Justin Sun is involved in fraud and market manipulation in the U.S. According to Coinbase's documents, Justin Sun announced a relationship with $wBTC through a partner in August. After the partnership announcement, Coinbase initiated a review of $wBTC. Coinbase had inquired with BIT about Justin Sun's involvement with $wBTC but received no response.
Coinbase concluded after a credibility investigation (Due Diligence) that the relationship between Justin Sun and wBTC, as well as his potential control over wBTC, poses immense risks to the integrity of both customers and the exchange.
In response to BIT's claims, Coinbase stated that no law compels Coinbase to hold any assets in trust, especially when that asset is related to a person involved in fraud. Whether Justin Sun has a relationship with BiT remains to be clarified, but the lawyer representing BiT Global did not comment on Coinbase's defense, and Tron did not respond to any comments.
wBTC VS cbBTC
$wBTC is an ERC-20 token on the Ethereum chain, unrelated to Bitcoin, and can be seen as a clone that matches Bitcoin's value on Ethereum. $wBTC is maintained by the WBTC DAO organization, which has about 30 members, initiated by BitGo, Ren, and Kybe.
Coincidentally, Coinbase also launched its own cbBTC, which is also an ERC 20 token issued on Ethereum, just with a name related to Bitcoin, and it can also circulate in the market at a 1:1 value with Bitcoin's price. Users can send Bitcoin on the Base chain and directly convert it to cbBTC. cbBTC will not have separate trading pairs on the Coinbase chain.
On the other hand, the claim of $wBTC is that Coinbase delisted $wBTC while promoting its own $cbBTC, similar to how Microsoft monopolizes the market.
[Disclaimer] The market carries risks, and investments should be made with caution. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Invest at your own risk.
This article is reprinted with permission from: (Chain News)
'The showdown! Why did Coinbase delist WBTC? It's because Justin Sun poses a credibility risk.' This article was first published on 'Crypto City'
