The recent rumors surrounding BlackRock and Coinbase stirred up quite the conversation, prompting a swift response from Coinbase CEO Brian Armstrong and other ETF experts. Yesterday, speculation ran wild, suggesting that Coinbase was not holding actual Bitcoin on behalf of BlackRock but was instead issuing IOUs, with both companies accused of manipulating Bitcoin's price.

For context, IOU stands for “I owe you,” a term commonly used in the crypto space to signify a debt. Allegedly, BlackRock, despite securing billions of dollars through its ETF, was supposedly receiving IOUs from Coinbase in place of real Bitcoin, sparking concerns across the community.

The story initially gained traction from a post by Tron’s CEO, Justin Sun. He raised questions about Coinbase's newly launched cbBTC token, which is supposedly backed 1:1 by Bitcoin. Sun criticized the token for its lack of proof of reserve and absence of audits. He also expressed concerns over the possibility of account balances being frozen without warning. According to Sun, "This is essentially asking for blind trust. In the U.S., any court can seize your Bitcoin. This is a prime example of a centralized, bank-like Bitcoin, and it marks a grim day for $BTC ."

Sun’s remarks and the rapidly spreading rumors created an atmosphere of skepticism, forcing Coinbase and its partners to step in and address the growing concerns head-on. Their responses aimed to clarify the situation and reassure the public about the security and integrity of their operations amidst these claims.

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