- Justin Sun’s strategic move on WBTC raises concerns.
- After a few hours, there was no significant impact on WBTC’s TVL or flows.
You see BT Global founder Justin Sun has made headlines after getting involved in the Warped Bitcoin (WBTC) custodian operation. a partner With BitGo, to lead the “first multi-jurisdictional, multi-institutional custody operation.”
However, the partnership has raised concerns about decentralization among community members, prompting the executive to respond and defend itself. Part of Sun’s statement Reads,
“My personal involvement in WBTC is entirely strategic. I do not control the private keys to the WBTC reserves and cannot transfer any BTC reserves.”
The sun added that
“But my goal with all of these relationships is to promote projects dedicated to decentralization, security and safety protocols. WBTC is a fundamental part of the defi ecosystem, and I look forward to ensuring it continues that way!”
Reactions to Justin Sun’s Move on WBTC
From another perspective, WBTC is one of the largest collateralized DeFi tokens. It is backed 1:1 by Bitcoin to bring BTC liquidity to the Ethereum DeFi ecosystem.
After Sun Partners with WBTC, the Maker of Major DeFi Player It was marked Movement as a kind of risk.
“We found that Sun’s participation as a controlling interest in the new WBTC joint venture represents an unacceptable level of risk.”
The firm cited a lack of transparency in Sun’s other projects, including Huobi’s USDT reserves. Additionally, the firm described BitGo as a counterparty risk after its recent failed acquisition of Galaxy Digital.
As a result, Maker was considering delisting WBTC from its platforms unless BitGo could guarantee that the new partnership would be secure.
“We will consider additional recommendations for parameter changes to protect the protocol and mitigate counterparty risk, including the potential complete removal of all Maker and Spark WBTC collateral integrations.”
However, in response, BitGo CEO Mike Belshe said: He was fired. Its creator’s concerns, noting that it is “a reaction to Justin Sun and not facts.”
“This seems to be more of a reaction to Justin Sun’s name than a reaction to the facts.”
For his part, Dan Reeser, co-founder of Wormhole, said: push hard Players can choose decentralized wrapped BTC with decentralized custodians.
“Another example of why decentralization is not a priority until there is a wake-up call.”
Decentralized wrapped BTC calls have also been made. echo Written by Austin Federa, Chief Strategy Officer at Solana Foundation.
“Decentralized Bitcoin is in great demand. It’s strange that 15 years after the Bitcoin revolution we still trust centralized gatekeepers.”
WBTC Status
Source: DeFillama
At the time of writing, WBTC had $9.4 billion. L TV (Total value locked.) Just hours after concerns about Sun’s involvement were raised, there was no sign of a sharp decline in total value locked or outflows.