An unknown wallet holder continues to actively acquire wrapped bitcoin (WBTC). According to the research agency Lookonchain, this whale has obtained WBTC worth more than $118 million over the past few weeks.
New Proposal by BitGo
BitGo has proposed transferring the management of WBTC to BiT Global and the Tron network. However, not all investors and developers agree with this move. This action aims to expand the adoption of WBTC across various communities.
MakerDAO Restricts Use of WBTC
Due to the ongoing controversies surrounding WBTC, the decentralized autonomous organization MakerDAO, which regulates the Maker Protocol, has introduced additional measures to limit the use of WBTC as collateral. MakerDAO has suspended its ability to issue new WBTC debts and prohibited any new borrowings backed by WBTC. This decision is driven by certain risks associated with the uncertain future of WBTC.
Alternatives on Lending Platforms
Other lending platforms are also exploring alternatives for WBTC. The decentralized finance application Aave is considering incorporating a new asset in the form of TBTC, a wrapped bitcoin. This could open up the market for borrowers and reduce the need to use WBTC. The future of WBTC may depend on several factors, including new developments and use cases.
The accumulation of WBTC by this whale could have various implications for the entire cryptocurrency market. If these purchases indicate that the whale has more faith in the utility of WBTC, it could lead to increased public trust in the token and, therefore, a higher price. However, ongoing controversies and the need for clarity surrounding WBTC could deter some investors.
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