Coinbase CEO Brian Armstrong and ETF experts quickly responded to a rumor that spread rapidly about BlackRock and Coinbase. The rumor, which began circulating yesterday, claimed that Coinbase wasn't holding actual Bitcoin (BTC) for BlackRock, but was instead issuing IOUs. It also alleged that both companies were keeping Bitcoin's price down.
In crypto, an IOU is like a token that represents a debt. The rumor suggested that BlackRock, after receiving billions of dollars for its ETF, was getting IOUs from Coinbase instead of real Bitcoin for those investments.
This rumor started from a post by Justin Sun, CEO of Tron. Sun criticized Coinbase's new cbBTC token, which is said to be backed 1:1 by Bitcoin. He pointed out that cbBTC lacks proof of reserves, hasn't been audited, and that the balance of any holder could be frozen. Sun stated, "This basically means 'trust me.' Any U.S. court can take your BTC. This is the ultimate example of central bank Bitcoin. It’s a bad day for BTC."#BlackRock #Write2Earn! #writetowin
