tBTC, a Bitcoin-pegged token on Ethereum failed after just two days on the mainnet. The project began its Public launch with MakerDAO and Compound support. The objective behind this launch was to bring Bitcoin, the world’s number one cryptocurrency usable on the Ethereum platform.
Matt Luongo, the Developer tweeted that they will rise again but for now the project has been shut down, pausing all the deposits for the next 10 days and they are helping users drain funds.
According to the thesis team, a bug has been cited and they will not disclose anything more as they want to safely withdraw all the funds from the iteration of tBTC.
How is tBTC different from WBTC?
The focus during the designing process of tBTC was to make it more decentralized than WBTC. In order to complete it’s operations,WBTC depends on several other companies, meanwhile tBTC fully relies on smart contracts.
The developers launched KEEP as the network’s platform token which requires a signer to create and control smart contracts to take in Bitcoin deposits.
tBTC’s performance on the first two days was not that bad with roughly 7.13 Bitcoin or $68,000 locked up. On the other hand, WBTC has 2,296 Bitcoin locked up.
So tBTC had a long way to go in order to be a perfect tokenized version of Bitcoin which can unlock the same amount of Bitcoin on Ethereum.
A smart contract Bug?
Some speculate that it most probably was a smart contract bug. Smart contract bugs are very hard to deal with. According to a report in August 2019, 60% of the projects suffer from smart contract bugs and 25% of all the smart contracts contain serious bugs.
As tBTC completely relies on smart contracts, its code had to be flawless. Maybe that’s where things went wrong for tBTC.