An unknown crypto whale has been making headlines by amassing substantial amounts of Wrapped Bitcoin (WBTC) amidst ongoing controversy regarding the token’s ownership structure.
Recent Purchases
According to a post by blockchain analytics firm Lookonchain on August 19, the unidentified wallet has acquired over 347 WBTC, worth approximately $16 million, in the past 12 hours alone. This recent purchase adds to an already significant stash, bringing the wallet’s total WBTC holdings to 1,953, valued at $118 million. The average purchase price for this accumulation is reported to be $58,853 per WBTC.
Ownership Controversy
The surge in WBTC acquisitions coincides with mounting controversy around the token’s control. On August 9, BitGo, the company behind WBTC, announced plans to transfer control of the token to a new joint venture. This venture involves BitGo, Hong Kong-based investment manager BiT Global, and Sun's Tron ecosystem.
Following this announcement, crypto risk management firm Block Analitica (BA) proposed on MakerDAO’s governance forum that the protocol should close all new WBTC debts and prevent new borrowing against WBTC collateral. MakerDAO approved and implemented this proposal on August 16, leading to a ban on borrowing WBTC on the Sparklend platform.
In response to these developments, lending giant Aave is considering proposing an alternative to WBTC for borrowing and lending activities. Aave is reportedly looking into supplying Threshold Network’s TBTC as an alternative wrapped Bitcoin token.
Coinbase’s Potential Move
Amid the controversy, US crypto exchange Coinbase has hinted at launching a new product, tentatively named “cbBTC.” Many in the crypto community speculate that this might be Coinbase’s own version of a wrapped Bitcoin token. Rena Shah, COO of Bitcoin software firm Trust Machines, has suggested that a token like cbBTC could significantly boost the adoption of Bitcoin-native decentralized finance (DeFi), noting that it presents a substantial onboarding opportunity for Bitcoin DeFi based on Coinbase’s current user base.
Implications
The accumulation of WBTC by an unknown whale and the controversy surrounding its ownership are stirring significant interest and potential disruptions in the crypto space. With proposals for alternative tokens and potential new products from major players like Coinbase, the dynamics of wrapped Bitcoin and its role in DeFi could see substantial changes in the near future.
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