Coinbase CEO Discusses Bitcoin IOUs and cbBTC Controversy in BTC News

Sunday, 15 September 2024, 11:30

Bitcoin (BTC) news highlights Coinbase CEO Brian Armstrong addressing the controversy surrounding Bitcoin IOUs and the cbBTC product. Recent rumors have suggested that Coinbase was issuing Bitcoin IOUs to BlackRock amid criticisms from Tron founder Justin Sun. Armstrong's clarifications emphasize the integrity of Coinbase's operations in ETF products, amidst concerns regarding wrapped Bitcoin.
Beincrypto
Coinbase CEO Discusses Bitcoin IOUs and cbBTC Controversy in BTC News

Coinbase's Response to Bitcoin IOU Allegations

Coinbase has recently countered rumors that it was issuing Bitcoin IOUs to BlackRock for its spot exchange-traded fund (ETF) product. This speculation arose following Justin Sun, founder of TRON blockchain, criticizing the firm's new wrapped Bitcoin product, cbBTC.

Critiques and Market Dynamics

On September 14, crypto analyst Tyler Durden implied that Coinbase was engaging in BTC IOUs, suggesting that BlackRock could short Bitcoin without a 1:1 backing. Durden referenced Cryptoquant data, noting Coinbase's significant market activity during highs and lows, positing that BlackRock might manipulate Bitcoin's price.

Concerns Raised About cbBTC

In the midst of this, Justin Sun raised issues with Coinbase's cbBTC, asserting it lacked Proof of Reserve, underwent no audits, and could freeze user balances at any moment. His comments have stirred significant discussion about the reliability of the cbBTC wrapped Bitcoin product.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Subscribe to our newsletter for the most current and reliable cryptocurrency updates. Stay informed and enhance your crypto knowledge effortlessly.

Subscribe