BiT Global claims Coinbase delisted Wrapped Bitcoin (wBTC) to gain a “competitive advantage” for Coinbase’s own Bitcoin (BTC) wrapper, Coinbase Wrapped BTC (cbBTC), the wBTC custodian told Cointelegraph.
On Nov. 19, Coinbase tipped plans to suspend trading of wBTC in December, citing undisclosed failures to meet the cryptocurrency exchange’s standards for listing tokens.
“It’s clear that Coinbase’s decision is an attempt to gain a competitive advantage, pushing forward their own wrapped Bitcoin product, cbBTC, and removing the largest and most influential competitor in WBTC,” a BiT Global spokesperson said in an email to Cointelegraph on Nov. 20.
Coinbase said the delisting was based on a customary review of wBTC’s suitability for trading on the cryptocurrency exchange rather than a bid to advantage cbBTC.
“We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on Dec. 19, 2024, on or around 12 pm ET,” the exchange said in a Nov. 19 post on X.
“Claims that Coinbase is delisting wBTC to gain market share for Coinbase’s wrapped bitcoin cbBTC are wrong,” a Coinbase spokesperson told Cointelegraph on Nov. 21.
“Each asset is reviewed independently of each other and each must independently maintain compliance with Coinbase’s listing standards. wBTC no longer meets Coinbase listing standards.”
Source: CoinMarketCap
Related: Stop panicking about Wrapped Bitcoin — There are other coins
Coinbase has already discontinued market trading of wBTC and is only facilitating trades in the form of limit orders. Bitcoin wrappers are tokens representing BTC on other blockchain networks.
“Investors should have the option to choose the asset that best fits their needs,” BiT Global said, adding:
“Coinbase has elected to strip investors of their right to make that decision by delisting WBTC to prop their own wrapped Bitcoin option.”
Source: DefiLlama
On Aug. 9, BitGo, the cryptocurrency custodian holding wBTC’s Bitcoin backing, agreed to grant Hong Kong-based crypto exchange BiT Global partial control of the multisignature wallet that holds the custodied Bitcoin.
“This announcement has proven controversial due to the involvement of Justin Sun, with many in the ecosystem expressing concern over his ‘affiliated projects show worrying signs of possible misappropriation’ of collateral,” Threshold, a rival Bitcoin wrapper, said in August.
According to DefiLlama, wBTC is still the most popular Bitcoin wrapper, with upward of $14 billion in total value locked (TVL).
Launched on Sept. 12, Coinbase’s wBTC competitor, cbBTC, has emerged as one of the most popular BTC wrappers, with some $1.5 billion in TVL, according to CoinMarketCap.
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