Wrapped Bitcoin

Bitcoin

DeFi

cbBTC

Wrapped Bitcoin (WBTC) experienced a shocking flash crash on Binance, plummeting nearly 95% from $98,500 to $5,209 in less than an hour on Nov. 23 before rebounding to around $98,000. The cause of the dramatic plunge remains unclear, with no comments from BitGo—the issuer of WBTC—or its team.
<div class="wp-block-image">
 <figure class="aligncenter size-full"><img decoding="async" width="1311" height="561" src="https://www.cryptotimes.io/wp-content/uploads/2024/11/WBTC-drops-below-5200.png" alt="WBTCUSDT Binance Chart" class="wp-image-217375" srcset="https://www.cryptotimes.io/wp-content/uploads/2024/11/WBTC-drops-below-5200.png 1311w, https://www.cryptotimes.io/wp-content/uploads/2024/11/WBTC-drops-below-5200-420x180.png 420w, https://www.cryptotimes.io/wp-content/uploads/2024/11/WBTC-drops-below-5200-860x368.png 860w" sizes="(max-width: 1311px) 100vw, 1311px">
 <figcaption class="wp-element-caption">
 Source: TradingView
 </figcaption>
 </figure>
</div>
This event follows Coinbase’s <a href="https://www.cryptotimes.io/2024/11/20/coinbase-to-delist-wrapped-bitcoin-wbtc-on-dec-19-2024/" rel="noopener noreferrer nofollow">announcement to delist WBTC</a>, effective Dec. 19, citing liquidity concerns. Simultaneously, Coinbase is advancing its own competitor, Coinbase Wrapped Bitcoin (cbBTC), further shaking up the tokenized Bitcoin market.
The delisting has strained relations between Coinbase and Justin Sun, whose joint venture with BitGo is linked to WBTC. Sun has been vocal about the competitive landscape, accusing Coinbase of failing to provide proof-of-reserves for its cbBTC token.
The wrapped Bitcoin market is witnessing increased competition, with Kraken introducing its version, kBTC. Meanwhile, the flash crash raises questions about the stability of WBTC, a key player in decentralized finance (DeFi) with a market capitalization of approximately $14 billion.
Launched in 2019, WBTC enables Bitcoin liquidity to integrate with DeFi platforms, pegged 1:1 with Bitcoin. Despite its recovery, the incident underscores the potential volatility in tokenized assets and the growing rivalry among issuers.

Wrapped Bitcoin Crashes Below $6,000 on Binance Following Coinbase Delisting

The Crypto Times

Other articles published on Nov 25, 2024

Cantor Fitzgerald Launches $2 Billion Bitcoin Lending Program

Cantor Fitzgerald to use Bitcoin as collateral via Tether

Trump’s Team Discusses Potential White House Crypto Role Amid Growing Industry Influence

Top 5 Crypto That Have Surpassed Their ATH In Recent Days!

Top Picks This Month: Get $TICS at $0.025 For $600% ROI Potential, BNB’s Developer Push, and Mone...

Hong Kong’s ZA Bank Partners With HashKey, Launching Retail Cryptocurrency Trading As Bitcoin App...

Join our free newsletter for daily crypto updates!