Close Menu
Altcoin ObserverAltcoin Observer
  • Regulation
  • Bitcoin
  • Altcoins
  • Market
  • Analysis
  • DeFi
  • Security
  • Ethereum
Categories
  • Altcoins (1,455)
  • Analysis (1,638)
  • Bitcoin (2,227)
  • Blockchain (1,316)
  • DeFi (1,539)
  • Ethereum (1,507)
  • Event (56)
  • Exclusive Deep Dive (1)
  • Landscape Ads (2)
  • Market (1,583)
  • Press Releases (2)
  • Reddit (877)
  • Regulation (1,480)
  • Security (2,106)
  • Thought Leadership (3)
  • Videos (41)
Hand picked
  • Update: received my money back from Celsius after 2-3years
  • Robinhood announces a new layer 2 blockchain 2
  • Solana Rival following herself for major outperformance after correction, according to the CEO of Real Vision, Raoul Pal
  • Bitwise’s ETF ETF hits the speed of regulatory slowdown
  • Vicbit Trading Center launches the CSR initiative to promote digital inclusion and education
We are social
  • Facebook
  • Twitter
  • Instagram
  • YouTube
Facebook X (Twitter) Instagram
  • About us
  • Disclaimer
  • Terms of service
  • Privacy policy
  • Contact us
Facebook X (Twitter) Instagram YouTube LinkedIn
Altcoin ObserverAltcoin Observer
  • Regulation
  • Bitcoin
  • Altcoins
  • Market
  • Analysis
  • DeFi
  • Security
  • Ethereum
Events
Altcoin ObserverAltcoin Observer
Home»DeFi»Coinbase’s cbBTC hits $100M on first day despite criticism from Justin Sun
DeFi

Coinbase’s cbBTC hits $100M on first day despite criticism from Justin Sun

September 15, 2024No Comments2 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
Cbbtc Coinbase.jpg
Share
Facebook Twitter LinkedIn Pinterest Email


Coinbase’s new wrapped Bitcoin product, cbBTC, saw rapid adoption in its first 24 hours, with a market cap approaching $100 million.

Data from Dune Analytics shows that the circulating supply of cbBTC has reached 1,720 tokens, worth $99.8 million. Of this total, 43% is on Base, while 57% resides on Ethereum.

Coinbase cbBTC
Coinbase cbBTC supply (Source: Dune Analytics)

Growth of Basic DeFi

Industry analysts have noted that the growth of Coinbase’s cbBTC could significantly boost DeFi activities on the exchange’s Layer 2 network, Base.

Moonwell DeFi contributor Luke Youngblood highlighted the impact of the product. He noted that cbBTC’s fungibility with Bitcoin on Coinbase would allow retail BTC holdings exceeding $20 billion and institutional holdings exceeding $200 billion to seamlessly integrate into Base’s on-chain ecosystem.

Nansen CEO Alex Ale also praised the token’s rapid adoption and predicted that it would significantly increase the Base network’s total assets.

He also noted that Coinbase currently holds about 36% of the supply, while market maker Wintermute ranks among the top holders. Svanevik noted:

“(It looks like) Wintermute is the number one market maker. (It will be) a solid business for them.”

FUDs of the Sun cbBTC

Despite cbBTC’s initial success, not everyone is optimistic.

TRON founder Justin Sun has expressed skepticism, calling cbBTC a “central bank BTC” due to its lack of proof-of-reserve audits and potential government intervention.

He said:

“The cbbtc has no proof of reserves, no audits, and can freeze anyone’s balance at any time. Basically, it’s just “trust me.” Any subpoena from the US government could seize all your BTC. There’s no better representation of central bank Bitcoin than this. This is a dark day for BTC.”

Sun also claimed that integrating cbBTC into DeFi could introduce security risks, as government subpoenas could instantly freeze on-chain Bitcoin, compromising decentralization. He said:

“I am friends with many DeFi protocol founders, but integrating cbbtc will pose major security risks to decentralized finance. A single government subpoena could instantly freeze on-chain Bitcoin, making decentralization a joke.

Some have suggested that Sun’s criticism may stem from concerns that Coinbase’s cbBTC could encroach on the market share of BitGo’s WBTC.—a project that Sun has ties to. Notably, its involvement with WBTC has sparked debate within the crypto community, as some are now looking for alternatives.

Mentioned in this article
Last Alpha Market report



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleBlockchain should benefit from GenAI’s ‘disillusionment’ moment
Next Article The 99-year Golden Eagle model places the fair market value of XRP at $13,386

Related Posts

DeFi

Chainlink links are reached $ 51.26 million while investors are looking for self -sufficiency and challenge opportunities

June 30, 2025
DeFi

The trading of tokenized stocks live on Kraken, Bybit and the SOLANA DEFI ecosystem – TradingView News

June 30, 2025
DeFi

Blockdag, Snorter Bot, Bitcoin Hyper, BTC Bull and Best Wallet

June 30, 2025
Add A Comment
Leave A Reply Cancel Reply

Single Page Post
Share
  • Facebook
  • Twitter
  • Instagram
  • YouTube
Featured Content
Event

Philippine Blockchain Week 2025 Welcomes Global Web3 Trailblazers to Manila

June 9, 2025

Manila, Philippines – June 9, 2025 — As Philippine Blockchain Week (PBW) 2025 returns for…

Event

ETHMilan 2025 Returns With a Stellar Line-Up at One of Milan’s Most Iconic Venues

June 5, 2025

Milan, Italy – Mark your calendars! ETHMilan, Italy’s largest international Ethereum and Web3 conference, is…

1 2 3 … 49 Next
  • Facebook
  • Twitter
  • Instagram
  • YouTube

Solana Rival following herself for major outperformance after correction, according to the CEO of Real Vision, Raoul Pal

June 30, 2025

The eyes of a bracing token $ 50 new ATH while Perps Trading reaches 1.571 Billion of dollars in volume – is that the break?

June 30, 2025

Is the XRP gear for a break? – These measures say yes, only if …

June 30, 2025
Facebook X (Twitter) Instagram LinkedIn
  • About us
  • Disclaimer
  • Terms of service
  • Privacy policy
  • Contact us
© 2025 Altcoin Observer. all rights reserved by Tech Team.

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 107,347.76
ethereum
Ethereum (ETH) $ 2,492.71
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.27
bnb
BNB (BNB) $ 657.85
solana
Solana (SOL) $ 155.48
usd-coin
USDC (USDC) $ 1.00
tron
TRON (TRX) $ 0.27996
dogecoin
Dogecoin (DOGE) $ 0.165846
staked-ether
Lido Staked Ether (STETH) $ 2,491.84