Maker

Wrapped Bitcoin

Bitcoin

tBTC

cbBTC

The price of Wrapped Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/wrapped-bitcoin-price-index" rel="null" target="null" text="null" title="null">WBTC</a>) on Binance plunged to an all-time low of about $5,200 on Nov. 23 in an apparent flash crash that did not affect the asset’s price on other exchanges.
WBTC began the day trading at normal price levels of around $98K before plummeting due to an electronic error affecting the trading system — the most common cause of flash crashes.
It rebounded almost immediately, and the daily candle for Wrapped Bitcoin on the Binance exchange closed the day at around the $97K price point and is currently trading at normal levels.
The Wrapped Bitcoin flash crash came days after <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-delist-wbtc" rel="null" target="null" text="null" title="null">Coinbase revealed it would delist WBTC</a> in a Nov. 19 announcement. “Coinbase will suspend trading for WBTC on December 19, 2024, on or around 12 PM Eastern Time,” the exchange <a data-ct-non-breakable="null" href="https://x.com/CoinbaseAssets/status/1858921827159945638" rel="null" target="null" text="null" title="null">told</a> followers on social media.
<figure>
 <img alt="Wrapped Bitcoin flash crashes to $5K on Binance exchange" src="https://s3.cointelegraph.com/uploads/2024-11/01936020-0a8e-7fcb-9865-f325eb1a33b9" title="">
 <figcaption style="text-align: center;">
 The WBTC flash crash on Binance. Source: TradingView
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/wrapped-bitcoin-in-defi-evaluating-wbtc-cbbtc-and-tbtc" rel="null" target="null" text="null" title="null">Wrapped Bitcoin in DeFi: Evaluating wBTC, cbBTC and tBTC</a>
<h2 id="coinbase-comes-under-fire-for-delisting-wbtc">Coinbase comes under fire for delisting WBTC </h2>
“We regularly monitor the assets on our exchange to ensure they meet our listing standards,” Coinbase said during the WBTC delisting announcement, but also assured customers that their WBTC funds would still be available for withdrawal.
In a statement to Cointelegraph, BiT Global, the custodian for WBTC, claimed that Coinbase delisted WBTC to give its own tokenized Bitcoin product, cbBTC, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bit-global-claims-coinbase-delisted-wbtc-for-competitive-advantage" rel="null" target="null" text="null" title="null">an advantage over other Bitcoin wrappers</a>. A spokesperson for BiT Global wrote:
<blockquote>
 “It’s clear that Coinbase’s decision is an attempt to gain a competitive advantage, pushing forward their own wrapped Bitcoin product, cbBTC, and removing the largest and most influential competitor in WBTC.”
</blockquote>
Coinbase <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-launches-wrapped-bitcoin-product" rel="null" target="null" text="null" title="null">launched cbBTC in September 2024</a> amid a controversy surrounding Wrapped Bitcoin’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitgo-wrapped-bitcoin-custody-multi-jurisdictions-institutions-tron-united-states" rel="null" target="null" text="null" title="null">transition to multi-jurisdiction custody</a>. The multi-jurisdiction custodial structure shared the custody of the private keys to the underlying Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) backing WBTC between the United States, Hong Kong and Singapore.
The involvement of Tron founder Justin Sun in the custodial agreement drew widespread concerns from the crypto community — sparking a backlash from the former Maker community, now known as Sky. This backlash eventually culminated in the Sky community <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sky-maker-going-ahead-plan-offboard-wrapped-bitcoin" rel="null" target="null" text="null" title="null">voting to drop WBTC</a> as trading collateral on the platform.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-layer2-sidechains-not-really-bitcoin-l2s/" rel="null" target="null" text="null" title="null">‘Bitcoin layer 2s’ aren’t really L2s at all: Here’s why that matters</a>

Wrapped Bitcoin flash crashes to $5K on Binance exchange

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Cointelegraph

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