Justin Sun Calls Coinbase's cbBTC a 'Ridiculous Combination'
CryptoNewsTerminal Staff12 Sep, 2024
Justin Sun Calls Coinbase's cbBTC a 'Ridiculous Combination'
Justin Sun, the founder of TRON (TRX), has criticized Coinbase's recently launched wrapped Bitcoin (BTC) token, cbBTC. In a series of tweets, Sun argued that cbBTC, an ERC-20 token pegged to BTC, is "a ridiculous combination" that "combines the central bank + bitcoin." "This is something even Satoshi Nakamoto could not have imagined when he created Bitcoin," Sun wrote. He further stated that cbBTC "has no audit, no proof of reserve, and can freeze your account anytime they want." "They can just confiscate all your BTCs by an order from the US government," he added. While Sun emphasized that he is not against Coinbase holding Bitcoin, or against the issuance of cbBTC per se, he believes that since it centralizes Bitcoin, it poses significant risks to decentralized finance.
