{"id":19264,"date":"2024-09-13T21:47:11","date_gmt":"2024-09-13T21:47:11","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=19264"},"modified":"2024-09-13T21:47:11","modified_gmt":"2024-09-13T21:47:11","slug":"justin-sun-critiques-coinbase-and-cbbtc-declares-launch-marks-a-troubling-milestone-for-bitcoin","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/justin-sun-critiques-coinbase-and-cbbtc-declares-launch-marks-a-troubling-milestone-for-bitcoin\/","title":{"rendered":"Justin Sun Critiques Coinbase and cbBTC, Declares Launch Marks \u201cA Troubling Milestone for Bitcoin\u201d"},"content":{"rendered":"\n

Justin Sun, the co-creator of the Tron blockchain, has raised concerns about cbBTC, a new Bitcoin token launched by Coinbase, a prominent cryptocurrency exchange that adheres to U.S. regulations.<\/p>\n

<\/span>Justin Sun Raises Alarm Over cbBTC<\/span><\/h2>\n

In a message shared on X, Sun highlighted several significant issues related to cbBTC, particularly its centralization, the potential for government seizure, and a lack of transparency.<\/p>\n

cbBTC is designed as a wrapped Bitcoin to provide additional options for BTC holders in decentralized finance (DeFi), competing with wBTC. While it presents certain benefits, the crypto community has expressed considerable debate about its transparency and centralization issues.<\/p>\n

Sun pointed out that cbBTC lacks a proofing system that platforms like Binance and OKX utilize to ensure users\u2019 assets are not mixed with those of the exchange. He also mentioned that cbBTC\u2019s code hasn\u2019t been deeply audited, potentially leaving it vulnerable to hacks and theft of funds.<\/p>\n

<\/a><\/p>\n

One major worry is that Coinbase, under U.S. governance, could freeze cbBTC at any moment. Sun noted that a simple subpoena could lead the government to seize all associated coins.<\/p>\n

Recognizing these potential risks, Sun expressed that while innovation is important, cbBTC signifies a \u201cdark day for Bitcoin.\u201d He likened this wrapped Bitcoin to \u201ccentral bank Bitcoin,\u201d stressing the risks linked to centralization and the possibility of the government suppressing a coin that ideally should be resistant to censorship.<\/p>\n

Coinbase\u2019s Goals for DeFi<\/h2>\n

A responder to Sun\u2019s commentary pointed out that the use of multisignature wallets to manage cbBTC adds to its centralization concerns, suggesting that such tokens might endanger the wider cryptocurrency ecosystem.<\/p>\n

Coinbase has yet to officially address these issues. However, in their announcement, they indicated that cbBTC would be launched on Ethereum, adhering to the ERC-20 standard, and also made available on Base, an Ethereum layer-2 platform. Their intention with this token is to promote the adoption of DeFi.<\/p>\n

Each cbBTC in circulation will be fully backed (1:1) by Bitcoin in Coinbase\u2019s custody. Nevertheless, access to the token will be restricted to users in select regions, including Brazil, Australia, and the U.S., but excluding New York.<\/p>\n","protected":false},"excerpt":{"rendered":"

Justin Sun, the co-creator of the Tron blockchain, has raised concerns about cbBTC, a new Bitcoin token launched by Coinbase, a prominent cryptocurrency exchange that adheres to U.S. regulations. Justin Sun Raises Alarm Over cbBTC In a message shared on X, Sun highlighted several significant issues related to cbBTC, particularly its centralization, the potential for […]<\/p>\n","protected":false},"author":1,"featured_media":19265,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Justin Sun Critiques Coinbase and cbBTC, Declares Launch Marks \u201cA Troubling Milestone for Bitcoin\u201d - Bitrabo","description":"Justin Sun, the co-creator of the Tron blockchain, has raised concerns about cbBTC, a new Bitcoin token launched by Coinbase, a prominent cryptocurrency exchang"},"footnotes":""},"categories":[316],"tags":[448,3081,8473,660,2430,8474,724,2529,3723,484,3013],"class_list":["post-19264","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-bitcoin","tag-blasts","tag-cbbtc","tag-coinbase","tag-dark","tag-dark-day","tag-day","tag-justin","tag-justin-sun","tag-launch","tag-sun"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/19264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=19264"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/19264\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/19265"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=19264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=19264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=19264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}