Justin Sun, the co-founder of Tron, a smart contracts platform and one of many blockchains competing with Ethereum, has an issue with the recently launched cbBTC, a wrapped Bitcoin token by Coinbase, a top crypto exchange complying with United States laws.\u00a0\u00a0<\/p>\n
In a post on X, Sun picked out<\/a> several glaring concerns, especially those revolving around its centralization, risks of seizure by the government, and its opaque nature.<\/p>\n Technically, cbBTC will serve as a wrapped Bitcoin and yet another token to take on wBTC, which aims to allow BTC holders to engage in DeFi. However, while positive, the perceived absence of transparency and centralizing could explain the raging debate across the crypto community.<\/p>\n Sun argues that cbBTC doesn\u2019t have a proofing system used by top exchanges like Binance and OKX<\/a>, for example, to assure holders that their assets are not being commingled with those of the exchange. Additionally, the co-founder said cbBTC\u2019s code has not undergone thorough audits, which means it could be at risk of being hacked and funds stolen.<\/p>\n <\/a><\/p>\n A major concern, however, is that Coinbase, the issuer directed by the United States government, can order cbBTC to be frozen at any time. Sun said a simple subpoena is needed for the government to seize all coins.\u00a0\u00a0<\/p>\n In light of these risks, Sun acknowledges innovation and thinks cbBTC marks a \u201cdark day for Bitcoin.\u201d The co-founder also compared the wrapped Bitcoin to a \u201ccentral bank Bitcoin,\u201d further emphasizing the dangers of centralization and the real risk of the government freezing a coin that is, in its pure form, censorship-resistant. <\/p>\nCoinbase Wants To Drive DeFi<\/h2>\n