Originally published on: August 20, 2024
An unidentified wallet address has been on a buying spree, accumulating a significant amount of Wrapped Bitcoin (WBTC) amidst ongoing debates about the token’s ownership structure.
According to blockchain analytics service Lookonchain, the mysterious whale address recently acquired 347 WBTC, valued at $16 million, in just one transaction. This purchase adds to the wallet’s growing stash of WBTC, which now totals 1,953 WBTC valued at around $118 million, purchased at an average price of $58,853.
These substantial WBTC acquisitions come at a time when the ownership structure of Wrapped Bitcoin is under scrutiny. BitGo, the team behind WBTC, recently announced plans to transfer control of the token to a joint venture with BiT Global and Justin Sun’s Tron.
In response to these developments, crypto risk management firm Block Analitica proposed closing all new WBTC debts on MakerDAO’s governance forum to prevent additional borrowing against WBTC collateral. MakerDAO subsequently approved and executed the proposal, prohibiting WBTC borrowing on the Sparklend platform.
Notably, Aave is reportedly planning to introduce an alternative to WBTC borrowing and lending by offering Threshold Network’s TBTC instead.
In light of BitGo’s decision, leading US crypto exchange Coinbase hinted at the launch of a new product named “cbBTC,” fueling speculation about its potential as a wrapped Bitcoin token.
Rena Shah, COO of Bitcoin software firm Trust Machines, believes that the introduction of cbBTC could significantly boost Bitcoin-native decentralized finance adoption. Shah emphasized the vast onboarding potential for Bitcoin DeFi through cbBTC, considering Coinbase’s extensive user base.
Stay tuned for more updates on this developing news in the crypto space.