US-based cryptocurrency exchange Coinbase has launched a new version of wrapped Bitcoin $58,845 announced the successful launch of its token, cbBTC, reaching a market value of $100 million on its first day.
Simplifying the DeFi Experience with cbBTC
Ethereum 
$2,310 Based on Bitcoin and backed by Bitcoin, cbBTC facilitates users’ decentralized finance (DeFi) experiences. According to CoinGecko data, cbBTC began trading on September 12, and its market value exceeded $100 million a day later.
Coinbase detailed how BTC holders can enhance their DeFi transactions with cbBTC, stating:
cbBTC removes a significant barrier by allowing customers to use the Bitcoin they already own on the Blockchain in new ways. cbBTC is designed to be seamlessly compatible with DeFi applications, so users can access new DeFi use cases, such as using their Bitcoin to provide liquidity or as collateral to borrow other cryptocurrencies.
Criticism from Justin Sun
Tron founder Justin Sun took aim at cbBTC, criticizing it for being overly centralized and trustless. Sun commented, “cbBTC is a ‘trust me’ system with no proof of reserves, no audits, and the ability to freeze anyone’s balance at will. Any US government subpoena can seize all your BTC. This is nothing more than a centralized bank’s Bitcoin. This is a dark day for BTC.”
According to current data, cbBTC is the 402nd largest cryptocurrency with a market cap of over $97.66 million.
The rapid rise of cbBTC demonstrates the importance of wrapped tokens and DeFi in the cryptocurrency market, but concerns about centralization and security remain important factors for investors.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
