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.
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