Coinbase announces full delisting of Wrapped Bitcoin (WBTC), WBTC team urges reconsideration.

The U.S. exchange Coinbase recently announced that it will suspend wrapped Bitcoin (WBTC) trading starting from December 19 this year, citing WBTC's failure to meet Coinbase's listing standards. This decision has prompted a response from the WBTC core team, who urged Coinbase to reconsider the matter on Twitter.

WBTC Trading Functionality to be Phased Out, Fully Terminated on 12/19

Coinbase announced on Twitter on 11/19 that they regularly review listed assets for compliance. Following a recent review, Coinbase decided to delist and halt trading for wrapped Bitcoin (WBTC), now only offering limit order trading. By 12/19, all Coinbase platforms including Coinbase.com, Coinbase Exchange, and Coinbase Prime will completely cease WBTC trading.

Concerns Arise over Management Transfer as Justin Sun Takes Over WBTC

Previously, WBTC relied on cryptocurrency custody firm BitGo as the primary custodian, responsible for safeguarding all Bitcoin assets backing WBTC. However, in August this year, BitGo reached an agreement with Hong Kong custody platform BiT Global, granting the latter "partial control" over multi-signature wallet permissions.

This move sparked market discussions as BiT Global is associated with Justin Sun, known for past projects that saw decreased transparency, management resignations, and suspension of real-time reserve attestations. Sun's involvement in the WBTC joint venture has raised concerns about WBTC stability and market trustworthiness.

Justin Sun's Takeover of WBTC Sparks Concerns! BitGo Enters New Partnership with BiT Global, MakerDAO Initiates Risk Control Proposal

WBTC Core Team Responds, Urges Coinbase to Reconsider

Following the news, the WBTC core team promptly responded on Twitter, expressing surprise and regret over Coinbase's decision. They emphasized that over the years, WBTC has become the most decentralized and transparent wrapped Bitcoin product through innovation and rigorous governance mechanisms.

Regardless of custody processes, on-chain verification, or regulatory compliance, WBTC has met all requirements and maintained active communication with relevant teams and regulatory bodies. They concluded by appealing to Coinbase to reconsider their decision.

Coinbase's cbBTC Emerges as New Competitor to WBTC

In September this year, Coinbase launched its own wrapped Bitcoin token, cbBTC, and integrated it into the Solana chain, quickly amassing a TVL of $1.4 billion, positioning itself as the main competitor to WBTC.

However, Coinbase faced criticism over transparency issues. To address market doubts, Coinbase pledged at the end of September to enhance cbBTC with verifiable proof of reserves to reassure their users.

Nevertheless, with WBTC currently holding over $13 billion in TVL, it remains the leader in the wrapped Bitcoin token market. As Coinbase discontinues support for WBTC in the future, market competition is expected to intensify.