Tron founder Justin Sun has once again attracted attention with his criticism of cbBTC and his demand for transparency from Coinbase.
Criticism of cbBTC
Justin Sun called cbBTC “central bank Bitcoin” and expressed skepticism about cbBTC's transparency and decentralization. He particularly pointed out the lack of proof of reserves and auditing for cbBTC.
Call for Reporting
Amid ongoing discussions about cbBTC, Sun reiterated that he expects transparency from Coinbase regarding Bitcoin reserves and is waiting for a Proof-of-Reserves report. Sun pointed out that all exchanges in the industry, including Binance, implement Proof-of-Reserves (PoR) and questioned why Coinbase has not.
Analysts' Perspective
Bloomberg ETF analyst Eric Balchunas stated that BlackRock’s involvement in the cbBTC project adds credibility to cbBTC. Balchunas added that BlackRock will not tolerate any mismanagement in maintaining Bitcoin reserves. However, Justin Sun argues that Coinbase should be transparent about its Bitcoin reserves and release its Proof-of-Reserves report.
Justin Sun highlighted that the crypto community needs transparency, not perfection. He also noted that relying on auditing firms for security is not enough, as seen in the FTX bankruptcy. Sun believes that the implementation of PoR by Coinbase would be the right step.
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