Close Menu
StreamLineCrypto.comStreamLineCrypto.com
  • Home
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT
  • Defi
  • Blockchain
  • Metaverse
  • Regulations
  • Trading
What's Hot

Here’s The Best Time To Buy Bitcoin As Impulse Wave Sets Path To $150,000

October 7, 2025

Ethereum Faces TD Sell Signal At Key Resistance—$4,100 Next?

October 7, 2025

Dutch crypto firm Amdax raises $35m to buy Bitcoin

October 7, 2025
Facebook X (Twitter) Instagram
Tuesday, October 7 2025
  • Contact Us
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms of Use
  • DMCA
Facebook X (Twitter) Instagram
StreamLineCrypto.comStreamLineCrypto.com
  • Home
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT
  • Defi
  • Blockchain
  • Metaverse
  • Regulations
  • Trading
StreamLineCrypto.comStreamLineCrypto.com

WBTC Episode ‘Reopened Old Wounds’ of Centralized Failures: Bitcoin Builders Association

December 18, 2024Updated:December 18, 2024No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
WBTC Episode ‘Reopened Old Wounds’ of Centralized Failures: Bitcoin Builders Association
Share
Facebook Twitter LinkedIn Pinterest Email
ad



WBTC Episode ‘Reopened Old Wounds’ of Centralized Failures: Bitcoin Builders Association

Earlier this yr, some customers of wrapped bitcoin wBTC had been dismayed to seek out its issuer BitGo was sharing custody of their bitcoin (BTC) with BiT International, a Hong Kong-based crypto custodian partly owned by TRON founder Justin Solar.

The episode “reopened outdated wounds inflicted by earlier centralized custody failure,” although it didn’t expose any novel flaws, the Bitcoin Builders Affiliation (BBA) stated in a report on Wednesday.

“These wounds trigger BTC holders to be unwilling to commerce off their self-custody for trusted options,” the report stated.

The BBA famous that there is been indicators of rising mistrust towards centralized entities. WBTC’s provide has dwindled to 0.74% of the overall bitcoin circulating provide from 1.5% over two years in the past.

The collapse of quite a few crypto entities in 2022 highlighted the dangers of ceding custody of 1’s cash to centralized custodians, a lesson that many customers will not be prepared to be taught the exhausting method once more.

WBTC Dominance

WBTC is an Ethereum-based token tradable 1:1 for BTC, permitting customers to place their belongings to work within the decentralized finance (DeFi) world which is essentially unavailable within the Bitcoin ecosystem.

The token is comfortably the market chief within the tokenized BTC sector, accounting for a 60.4% share, in keeping with the BBA. When added along with distant runner up BTCB (constructed on BNB), the 2 tokens have a market share of 87.2%.

Nonetheless, this consolidation may very well be within the strategy of being damaged up given the uptick in new tokens rising of late. Of the 21 totally different individuals on this sector, 40% have launched in 2024 or will achieve this within the close to future, the BBA stated.

The BBA listed every of those individuals within the report and addressed a few of the professionals and cons of a choose few. For instance, wBTC is essentially the most liquid token, is built-in throughout all the biggest blockchains and has been stress-tested for over 5 years. Nonetheless, the enterprise with BiT International is a priority for a lot of given the counterparty threat it introduces, “particularly contemplating the involvement of Justin Solar, recognized for controversial practices within the crypto area,” in keeping with the report.

On different hand, a token like Bitcoin layer-2 Stacks’ sBTC has but to be stress examined (having gone dwell solely this week) and its novel programming language Readability could make DeFi integration extra tough. On the plus aspect, it’s extra decentralized than wBTC and inherits the safety of the Bitcoin community’s safety.

The tokenized BTC market represents a mere 1.23% of the overall bitcoin market cap, equal to round $25 billion on the time of writing.

“This highlights the immense untapped potential for options providing a programmable model of BTC,” the BBA stated.

Learn Extra: Bitcoin Venture BOB Maps Out How the Unique Blockchain Might Take Over DeFi





Source link

ad
Association Bitcoin builders Centralized Episode Failures Reopened WBTC Wounds
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Related Posts

Here’s The Best Time To Buy Bitcoin As Impulse Wave Sets Path To $150,000

October 7, 2025

Ethereum Faces TD Sell Signal At Key Resistance—$4,100 Next?

October 7, 2025

Dutch crypto firm Amdax raises $35m to buy Bitcoin

October 7, 2025

Why did BTC reach a new all-time high?

October 7, 2025
Add A Comment
Leave A Reply Cancel Reply

ad
What's New Here!
Here’s The Best Time To Buy Bitcoin As Impulse Wave Sets Path To $150,000
October 7, 2025
Ethereum Faces TD Sell Signal At Key Resistance—$4,100 Next?
October 7, 2025
Dutch crypto firm Amdax raises $35m to buy Bitcoin
October 7, 2025
Why did BTC reach a new all-time high?
October 7, 2025
Solana ETF vs. Ether: Can SOL Outperform ETH?
October 7, 2025
Facebook X (Twitter) Instagram Pinterest
  • Contact Us
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms of Use
  • DMCA
© 2025 StreamlineCrypto.com - All Rights Reserved!

Type above and press Enter to search. Press Esc to cancel.