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Debashree Patra
Debashree Patra
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- Dec 19, 2024 12:22 UTC
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WLFI Ditches $10M cbBTC for WBTC Amid Coinbase Controversy
World Liberty Financial exchanged $10.4 million worth of cbBTC for WBTC, despite the growing popularity of cbBTC.
ustin Sun, a major WLFI investor critical of cbBTC, likely influenced this decision, aligning WLFI with WBTC.
Coinbase's delisting of WBTC amidst controversy may have further motivated WLFI's shift.
World Liberty Financial (WLFI), a decentralized finance project supported by Donald Trump, has made waves by swapping $10.4 million worth of cbBTC for Wrapped Bitcoin (WBTC). This significant move follows Coinbase’s controversial decision to delist WBTC, raising questions about WLFI’s motives.
According to blockchain analytics firm Lookonchain, WLFI exchanged 102.9 cbBTC for 103.15 WBTC. This swap comes as cbBTC—Coinbase’s Bitcoin wrapper—gains popularity with a market cap of $1 billion. Despite this growth, WLFI’s choice to pivot toward WBTC suggests a clear preference for its established reputation and infrastructure.
cbBTC vs. WBTC: What’s at Stake?
While cbBTC’s adoption is growing, WBTC has come under scrutiny. Coinbase’s announcement to delist WBTC has intensified questions about its role in the DeFi ecosystem. By moving away from cbBTC, WLFI appears to be steering clear of potential controversies tied to the newer Bitcoin wrapper.
Justin Sun’s Role in the Move
Justin Sun, founder of TRON DAO and a major WLFI investor, has played a key role in this transition. Recently Sun, a vocal critic of cbBTC’s governance and transparency, invested $30 million in WLFI and joined as an advisor. His association with BitGo, the custodian of WBTC, further underscores his influence on WLFI’s alignment.
Sun’s involvement has brought significant collaborations to WLFI, including partnerships with Chainlink and TRON. These alliances aim to bolster WLFI’s infrastructure while reflecting Sun’s vision for advancing decentralized finance. By integrating Chainlink’s decentralized tools and TRON’s Scale program, WLFI is positioning itself for sustained growth.
Coinbase Controversy Adds Fuel
Coinbase introduced cbBTC in September, aiming to rival WBTC in the DeFi space. However, the exchange announced plans to delist WBTC, prompting a legal challenge from BiT Global, a custodian linked to WBTC. On Wednesday, a court sided with Coinbase, allowing the delisting to proceed.
WLFI’s move aligns it with WBTC’s trusted infrastructure and market presence, distancing itself from cbBTC’s controversies. This decision also reflects a broader strategy to leverage Sun’s blockchain expertise and partnerships, including Chainlink’s decentralized services and TRON’s Scale program.
It remains to be seen whether this represents a calculated risk or a deeper alignment. Actions like these remind us that narratives can influence markets just as much as numbers do.
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