A whale accumulated over $118 million of WBTC in the last week.
    This comes when many are worried about WBTC’s growing centralization.

As a seasoned researcher with years of immersion in the dynamic world of cryptocurrencies, I find the recent developments surrounding Wrapped Bitcoin (WBTC) intriguing and somewhat concerning. The rapid accumulation of WBTC by a single entity, worth over $118 million, is a clear indication of growing interest in this particular token. However, it also raises questions about centralization, an issue that has been a topic of debate within the crypto community for quite some time now.


Over the past seven days, a whale has amassed approximately 118 million dollars’ worth of Wrapped Bitcoin (WBTC) from Binance, with an additional 347 WBTC tokens valued at around 16 million dollars added to its wallet in just one day on August 20th.

According to blockchain analytics firm Lookonchain, a large investor (referred to as a “whale”) purchased approximately 347 Wrapped Bitcoins (WBTC), worth around $16 million, just 7 hours ago. The WBTC that this whale now owns was acquired at an average price of roughly $58,853 each.

Whale Accumulates WBTC Despite Controversy Surrounding the Token

Source: Lookonchain

Not Everyone Feels the Same Way About WBTC

In some crypto communities, there’s been controversy surrounding WBTC due to its volatile nature. Some are even considering distancing themselves from it. Notably, Block Analitica has put forth a proposal to MakerDAO suggesting they stop using WBTC as collateral for issuing stablecoin positions and close all existing ones that were opened with WBTC. This proposition was presented on August 10, and the vote took place on August 16, with most members voting in favor of the plan.

It’s possible that Aave may make its next move. Recent reports indicate that the Decentralized Finance (DeFi) platform might sever connections with Wrapped Bitcoin (WBTC) and shift towards Threshold Network’s TBBC as an alternative wrapped Bitcoin token instead.

With various protocols transitioning away from their reliance on Wrapped Bitcoin (WBTC), it’s natural to question the reasons behind this shift. The change originated when BitGo, the issuer of WBTC, transferred its operations to a new partnership, a joint venture between BitGo and BiTGlobal, a Hong Kong-based custodian. Interestingly, this Hong Kong entity has partial ownership from Justin Sun and the Tron ecosystem, leading some to express concerns about potential centralization within WBTC.

Through expressed worries via proposals and social media, it appears that Coinbase has taken notice and seized the opportunity to debut a wrapped Bitcoin token on the Binance Smart Chain platform. Known as cbBTC, this new token is set to arrive soon, as announced by Coinbase.

 

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2024-08-21 12:18