• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Wrapped Bitcoin Panic: Is There a Need to Worry?

user avatar

by Giorgi Kostiuk

10 months ago


Since August, concerns over the security of Wrapped Bitcoin (WBTC) have been growing in the cryptocurrency market. BitGo's partnership with BiT Global sparked panic among holders, but is there really a cause for concern?

First Wave of Panic

In August, BitGo announced plans to grant partial control over WBTC reserves to BiT Global, which was met with negative reactions among token holders. BiT Global is associated with Justin Sun, founder of TRON, who has repeatedly been accused of fraud. DeFi protocols began to offload WBTC, and rumors about Coinbase's dubious Bitcoin commitments only fueled the panic.

WBTC remains the most popular wrapped Bitcoin token.

New Safety Frontier

Though the rumors about Coinbase were unfounded and DeFi protocols started resuming their activities with WBTC, fears concerning the BiT Global partnership persist. However, BitGo has implemented additional safety measures, including publishing all wallet addresses and notifying WBTC holders 60 days prior to any changes in the custody structure.

Additional details and clarity have put us in a more comfortable position with the current state of WBTC operations.Block Analytica

Growing Competition

A significant challenge for WBTC comes from Coinbase's new wrapped token, cbBTC, which has already reached $250 million in value. Launched on Ethereum and Base, this token also complies with strict regulations and ensures asset protection. Other competitors like 21BTC and tBTC are also vying for their place in the market.

While concerns over WBTC remain, replacing it with cbBTC or other wrapped tokens is not necessary. BitGo has taken all measures to maintain asset security, and competition in the market will only improve overall reliability.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Algorand (ALGO) Aiming for $0.50: Current Trend Analysis

chest

Algorand (ALGO) price changes after a long decline. Current analysis indicates bullish trends and potential support levels.

user avatarGiorgi Kostiuk

Explore Potential Altcoins: BlockDAG, Chainlink, XRP, and Cardano

chest

Overview of BlockDAG, Chainlink, XRP, and Cardano, their features and relevance in the market.

user avatarGiorgi Kostiuk

WLFI Token Prepares for Trading with $16 Billion Market Valuation

chest

The WLFI token, tied to a DeFi initiative, is set to debut on exchanges with a valuation of $16 billion. Negotiations for exchange listings are ongoing.

user avatarGiorgi Kostiuk

Latest News on Pi Network, Binance Coin, and BlockDAG in the Crypto Space

chest

An overview of the current state of Pi Network, Binance Coin, and BlockDAG in the cryptocurrency market.

user avatarGiorgi Kostiuk

Crypto News: BlockDAG, Mantle, and Ethereum Show Growth

chest

BlockDAG partners with Seattle Seawolves, while price predictions for Mantle and Ethereum turn positive.

user avatarGiorgi Kostiuk

BlockDAG Launches with 7-Day Access Window, VeChain Stays Flat, Pi Coin Drifts

chest

BlockDAG offers unique early access to coins upon launch as VeChain and Pi Coin stabilize at their levels.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.