So, what is going on WBTC? đ„
The spotlight is on Justin Sun, the wealthy founder of Tron, and there's a lot to unpack.
On August 9, BitGo said they plan to expand WBTC custody to Hong Kong and Singapore during a 60-day transition. They're aiming to open the doors to more countries and institutions and spread out their security measures.
But thereâs a twist: the plan involves companies tied to Justin Sun, sparking worries that he might get too much control.
Justin Sun has been in hot water before over how he managed TUSD and the HTX exchange (once called Huobi), with problems like TUSD losing its peg to the dollar and murky dealings with reserve funds.
Some folks in the crypto scene are nervous that Sun might use his influence over WBTC in ways that could shake up the market.
Reacting to these concerns, MakerDAO, a platform built on Ethereum, has suggested putting a halt to WBTC loans and slashing the Loan-to-Value (LTV) ratio to zero as a precaution.
They're also gearing up to vote on whether to keep supporting WBTC after BitGo's changes. Theyâre worried about Sun possibly pumping out too much WBTC or fudging the numbers on how much backing it has. They point to his recent moves with Huobi's reserves as a red flag.
BitGo's CEO, Mike Belshe, has hit back, saying their platform's setup makes foul play impossible. According to him, no WBTC can be made without Bitcoin backing it, and they're committed to keeping everything transparent with real-time proof of reserves.
After MakerDAO voiced their concerns, Justin Sun chimed in on social media. He insisted his role with WBTC is just strategic, stressing there won't be any compromises on decentralization, security protocols, or safety. He also emphasized that he doesn't hold the private keys to the WBTC reserves; those are safely tucked away using BitGo's tech.
