US crypto giant Coinbase has successfully gone live with the launch of its wrapped Bitcoin token with a market cap of $100 million.
The company’s Coinbase Wrapped BTC (cbBTC) is a Bitcoin (BTC)-backed, Ethereum (ETH)-based token that aims to help users streamline their decentralized finance (DeFi) experience.
Data from CoinGecko shows that cbBTC began trading on September 12 before reaching a market capitalization of over $100 million the next day.
Coinbase recently explained how BTC holders can use the wrapped version of the company’s crypto king to streamline their DeFi experience.
“cbBTC removes a key point of friction by allowing customers to use the Bitcoin they already own on-chain in new ways. cbBTC is built to be seamlessly compatible with DeFi applications, so users can now leverage new DeFi use cases, such as providing their Bitcoin as liquidity to DeFi protocols, or using it as collateral to borrow other crypto assets. .
When Coinbase users send their BTC from Coinbase to an address on Base or Ethereum, that BTC is automatically converted 1:1 to cbBTC. When users receive cbBTC into their Coinbase accounts, it will be converted 1:1 from cbBTC to BTC.”
Tron (TRX) founder Justin Sun criticized cbBTC said Coinbase’s new project was too centralized and based on trust.
“cbBTC has no Proof of Reserve, no audits, and can freeze anyone’s balance at any time. Essentially it’s just ‘trust me.’ Any US government subpoena could confiscate all your BTC. There is no better representation of central bank Bitcoin than this. It is a dark day for BTC.”
At the time of writing, cbBTC is the 402nd largest cryptocurrency with a market cap of over $97.66 million.
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