An anonymous whale has acquired more than $118 million worth of Wrapped Bitcoin (WBTC) within a short period of time. This activity has raised concerns among the DeFi community.
Summary of Events
The unknown investor accumulated a total of 1,953 WBTC, acquired at an average cost of $58,853 per coin. The last transaction involved the purchase of 347 WBTC, valued at nearly $16 million, and took place within a span of under 12 hours on August 19.
Conflicts and Concerns
The sudden and substantial increase in WBTC accumulation has caused concern, particularly in light of ongoing discussions and disputes regarding WBTC ownership and administration. BitGo's intention to shift WBTC governance to a collaborative effort with BiT Global from Hong Kong and Sun's Tron ecosystem has sparked increased scrutiny and apprehension among prominent DeFi participants.
DeFi Platforms' Reactions
MakerDAO, a prominent decentralized finance protocol, has authorized a proposal that forbids borrowing using WBTC collateral on its Sparklend platform. Aave is considering the incorporation of an alternative token called TBTC, provided by Threshold Network, which represents wrapped bitcoin. Coinbase's potential entry into the wrapped bitcoin market with 'cbBTC' could significantly disrupt the market.
The active acquisition of Wrapped Bitcoin is raising concerns in the DeFi community due to potential implications for governance and market stability.
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