Tron founder and one of the leading names in the cryptocurrency industry, Justin Sun, made harsh criticisms of Coinbase's Bitcoin asset cbBTC.
Justin Sun's Criticism
In a recent statement, Justin Sun questioned the transparency and decentralization of cbBTC, specifically addressing the lack of proof of reserves and auditing.
Transparency Issues and Centralization Risks
Sun claimed that Coinbase has the ability to freeze balances at any time, citing the centralization risks inherent in cbBTC. “cbBTC lacks Proof of Reserves, has no auditing, and can freeze anyone’s balance at any time. It’s basically just saying ‘trust me,’” Sun said, adding that any subpoena from the US government could lead to the seizure of all Bitcoin involved.
Sun's Concluding Remarks
Sun called cbBTC 'central bank Bitcoin,' emphasizing that his criticism comes amid growing controversy over his alleged involvement in the management of Wrapped Bitcoin (WBTC). Sun concluded his criticism by saying that there is a stark contrast between the principles of Bitcoin and what cbBTC represents: "There is no more absurd combination in the world than central banks and Bitcoin. I think this is a day that Satoshi Nakamoto could never have imagined when he founded Bitcoin."
Justin Sun's criticism highlights the importance of transparency and decentralization in the cryptocurrency industry.
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