BiT Global claims that Coinbase has removed Wrapped Bitcoin (WBTC) to gain a "competitive advantage" for its own Bitcoin wrapper product, Coinbase Wrapped BTC (cbBTC), according to a message from the WBTC supervisor to TinTucBitcoin.
On November 19, Coinbase revealed plans to suspend WBTC trading in December, citing undisclosed failures to meet the Crypto Exchange's Token listing standards.
"It is clear that Coinbase's decision is an effort to gain a competitive advantage, promoting their wrapped Bitcoin product cbBTC, and eliminating the largest and most influential competitor, WBTC," a BiT Global spokesperson said in an email to TinTucBitcoin on November 20.
Coinbase said the delisting was based on a routine evaluation of WBTC's suitability for trading on the exchange, rather than an effort to benefit cbBTC.
"We regularly monitor the assets on our platform to ensure they meet our listing standards. Based on our most recent review, Coinbase will be suspending trading in wBTC (wBTC) on December 19, 2024, at around 12pm ET," the exchange said in a post on X on November 19.
Coinbase did not immediately respond to TinTucBitcoin's request for specific comment on BiT Global's claims.
Source: CoinMarketCap
Coinbase has suspended market trading for WBTC and is only supporting limit order trading. Wrapped Bitcoins are Tokens representing BTC on other blockchains.
"Investors should have the right to choose the asset most suitable for their needs," BiT Global said, and added:
"Coinbase has chosen to deprive investors of their right to choose by delisting WBTC to promote their own wrapped Bitcoin product."
Source: defillama
On August 9, BitGo — the Crypto custodian holding the Bitcoin backing of WBTC — agreed to grant partial control of the multisignature wallet holding the collateralized Bitcoin to the Hong Kong-based Crypto exchange BiT Global.
"This announcement has been controversial due to the involvement of Justin Sun, with many in the ecosystem expressing concerns about his 'associated projects' showing 'worrying signs of potential misuse' of the collateral," Threshold, a competitor to the Bitcoin wrapper, said in August.
According to defillama, WBTC remains the most popular Bitcoin wrapper, with over $14 billion in Total Value Locked (TVL).
Launched on September 12, Coinbase's competitor to WBTC, cbBTC, has emerged as one of the most popular BTC wrappers, with around $1.5 billion in TVL, according to CoinMarketCap.
