A mysterious wallet address has been accumulating large amounts of Wrapped Bitcoin (WBTC) amidst ongoing controversy surrounding the token’s ownership structure.
In Aug. 19 post on X, blockchain analytics firm Lookonchain revealed that an unidentified whale address had acquired over 347 WBTC – worth approximately $16 million at current prices – within the last 12 hours.
This adds to the wallet’s growing WBTC holdings over the past week, now totaling 1,953 WBTC ($118 million) at an average purchase price of $58,853.
These significant WBTC acquisitions come amid ongoing debates about the token’s ownership. On Aug. 9, BitGo, the team behind Wrapped Bitcoin, announced plans to transfer control of WBTC to a joint venture involving itself, Hong Kong-based investment manager BiT Global and Sun’s Tron ecosystem.
On Aug. 10, crypto risk management firm Block Analitica proposed on MakerDAO’s governance forum to halt new WBTC debts and prevent borrowing against WBTC collateral. By Aug. 16, MakerDAO had approved and enacted the proposal, restricting WBTC borrowing on the Sparklend platform.
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Additionally, lending giant Aave is reportedly preparing to propose an alternative wrapped Bitcoin token, Threshold Network’s TBTC, as a substitute for WBTC borrowing and lending.
In response to BitGo’s controversial move, U.S. crypto exchange Coinbase hinted at the potential launch of a new product called “cbBTC,” leading many in the crypto community to speculate that Coinbase might be preparing to introduce its own wrapped Bitcoin token.
Rena Shah, the chief operating officer of Bitcoin software firm Trust Machines, commented to Cointelegraph that such a token could significantly enhance the adoption of Bitcoin-native DeFi, stating, the opportunity for cbBTC, based solely on current Coinbase users, is a massive onboarding opportunity for Bitcoin DeFi.
Cre: cointelegraph
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