Unknown Crypto Well has been collecting WBTC in controversy
An unknown wallet address was hoarding a large amount of frozen bitcoin amid ongoing controversy surrounding the token's ownership structure.
In the year In a post on August 19, blockchain analytics service Lookonchain reported that an unknown wallet address had taken 347 Wrapped Bitcoin (WBTC) – worth $16 million at the current price – hours ago.
Source: Lookonchain
He adds to his wallet's growing WBTC reserves, which have now accumulated a total of 1,953 WBTC (approximately $118 million) at an average price of $58,853.
The discounted WBTC purchase comes amid ongoing controversy surrounding the ownership structure of the bundled bitcoin token.
In the year August 9, BitGo – The group behind the popular Bitcoin has announced plans to transfer control of WBTC to a joint venture that includes itself, Hong Kong-based investment manager Bit Global and Justin Sun Tron.
In the year On August 10, crypto risk management firm Block Analytica (BA) published a proposal on MakerDAO's management platform calling for the protocol to close all new WBTC liabilities and hedge new loans against WBTC collateral.
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In the year On August 16, MakerDAO approved and implemented the proposal, banning WBTC lending on the Sparkland platform.
Lending giant Aave is also preparing to offer an alternative to borrowing and lending WBTC, proposing to offer an alternative bundled Bitcoin token – Threshold Network's TBTC – instead.
Following Bitgo's controversial move, US crypto exchange Coinbase has teased that it may launch a new product called “cbBTC”, which some crypto experts speculate is a move by the exchange to launch its own wrapped Bitcoin token.
Reena Shah, chief operating officer of Bitcoin software company Trust Machines, told Cointelegraph that the new token could strengthen the adoption of Bitcoin-based decentralized finance.
“The cbBTC opportunity based solely on current Coinbase users is a huge onboarding opportunity for Bitcoin DeFi,” Shah said.
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