Coinbase CEO Brian Armstrong responded to Tron founder Justin Sun's criticism regarding the launch of the cbBTC token.
Justin Sun's Critique
On September 12, Justin Sun criticized cbBTC for lacking Proof of Reserves, audits, and potential for freezing user balances. Sun described the system as unreliable and warned that the US government could seize the underlying Bitcoin if subpoenaed. 'There’s no better representation of central bank Bitcoin than this,' he said.
Launch of cbBTC Token
Coinbase announced the launch of cbBTC on September 12. The company stated that the token follows the ERC-20 standard and is backed 1:1 by Bitcoin held by Coinbase. The new crypto allows 'millions of BTC holders' to securely access DeFi applications on the Base network.
Armstrong's Comment on ETF Rumors
Amid Sun's comments, rumors circulated that Coinbase is writing Bitcoin IOUs for BlackRock and suppressing the market leader’s price. Armstrong reassured that all ETF transactions processed by Coinbase are 'ultimately settled onchain.' Institutional clients have trade financing and OTC options before settling on the blockchain within one business day. He emphasized the confidentiality of their institutional clients’ addresses.
Coinbase CEO Brian Armstrong remains steadfast in defending the company's decisions, highlighting their transparency and reliability.
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