Coinbase cbBTC is bad for Bitcoin!

[0t3p0t]

I am safe from this because I am not a coinbase user though I have account but it's dormant now. I am also not interested in cbBTC maybe I prefer holding memecoins rather than that coin which most of you here don't like. Actually I have no idea about the cbBTC and I appreciate you guys sharing this here.

[babo]

Coinbase recently release new erc20 token cbBTC and they are claiming this is backed by Bitcoin held by Coinbase exchange.

Now Coinbase is basically writing Coinbase is writing Bitcoin IOU for Blackrock that is affecting the market price.
There are no audits for this junk, no proof of reserves, and anyone can freeze this fake bitcoin token at anytime.
Government can seize this coins whenever they want, and they have worse privacy than bitcoin main net.

Don't use cbBTC and similar junk tokens

same for wBTC sBTC and other
this whole family of coins takes your precious bitcoins and gives you a token with the promise that you will get bitcoins back
no one gives you a guarantee that this will actually happen, so be careful about it
better if you keep them yourself

[KryptoBull]

Since I am not a big user of Coinbase, I am not using its cbBTC and I am not planning to do so in the near future. Of course, Coinbase users may opt to use this another alternative and it is all up to them to be aware of what they are getting into. As long as there is no deception or lies in promoting this asset, that would be fine with me. We should note that it is our responsibility to know, analyze and decide what are the things we use, invest on and essentially getting our nods. Now, with all the things this cbBTC is bringing, I don't really see whether this can be bad or good for Bitcoin...maybe this can however be bad for those who are using them in case something will happen with Coinbase.

I'm also not a Coinbase user as I don't live in the US, and I rarely touch Wrapped BTC since I always have access to BTC on CEXs. However, I don't have a very negative opinion of Coinbase cbBTC. cbBTC is similar to many other Wrapped BTCs on the market, and it's even better when backed by Coinbase - a company with publicly traded shares and a lot of credibility in the crypto market.

On the positive side, cbBTC can increase the liquidity of BTC in new ecosystems thanks to lower fees and higher speeds. I personally decline to use cbBTC but I won't stop anyone from touching cbBTC if it can benefit them.

[dkbit98]

I had recently read an article about this cbBTC where Justin Sun, the co-founder of Tron, launched a scathing attack on Coinbase via a post on the X platform, where he described the launch of the coin by Coinbase as a dark day for Bitcoin. Sun pointed out that cbBTC lacks proof of reserve and is not subject to any independent audits, allowing Coinbase to freeze users’ assets at any time.

He is accusing others for creating tokens like this and in the same time he has similar bitcoin token on his tron blockchain and those tokens can also be frozen
Maybe he wanted to get more attention for some of his new projects and plans, or he just likes being in center of attention, but he has a point about most things with cbBTC and coinbase.

[bitmover]

Coinbase recently release new erc20 token cbBTC and they are claiming this is backed by Bitcoin held by Coinbase exchange.

Now Coinbase is basically writing Coinbase is writing Bitcoin IOU for Blackrock that is affecting the market price.
There are no audits for this junk, no proof of reserves, and anyone can freeze this fake bitcoin token at anytime.
Government can seize this coins whenever they want, and they have worse privacy than bitcoin main net.

Don't use cbBTC and similar junk tokens

I think that if they are selling ERC20 tokens to Blackrock, which will sell those tokens are BTC, SEC will just go after them! This shouldnt be allowed.

Where is the SEC when we need it? lol

[yhiaali3]

I had recently read an article about this cbBTC where Justin Sun, the co-founder of Tron, launched a scathing attack on Coinbase via a post on the X platform, where he described the launch of the coin by Coinbase as a dark day for Bitcoin. Sun pointed out that cbBTC lacks proof of reserve and is not subject to any independent audits, allowing Coinbase to freeze users’ assets at any time.

He is accusing others for creating tokens like this and in the same time he has similar bitcoin token on his tron blockchain and those tokens can also be frozen
Maybe he wanted to get more attention for some of his new projects and plans, or he just likes being in center of attention, but he has a point about most things with cbBTC and coinbase.

Yes, that’s right, in addition to that there has been controversy and user discontent regarding the relationship between Justin Sun and BitGlobal, which became a WBTC custodian partner with BitGo, as it angered users as they were not consulted via the DAO.

While BitGo CEO Mike Belshe defended and confirmed the independence of wBTC from Justin Sun, despite the involvement of BiT Global. Belshe confirmed that Tron founder Justin Sun does not have access to the keys to the cryptocurrency’s custodian assets.

https://www.coindesk.com/business/2024/08/15/bitgo-reiterates-autonomy-from-justin-sun-tron-as-makerdao-decides-to-dump-wbtc/

So Sun may have staged this play to distract the public from his own trashy WBTC.

[NotATether]

Lol

First wrapped Bitcoins, then Ordinals, then fractal bitcoins and now cbBTC, all trying to impersonate Bitcoin.

How do they even come up with his kind of token anyway? Does it have all of Bitcoin's validation rules in a smart contract? I didn't think so.

It strikes me as some ticker that pegs to the price of Bitcoin.

[dkbit98]

I think that if they are selling ERC20 tokens to Blackrock, which will sell those tokens are BTC, SEC will just go after them! This shouldnt be allowed.

Nobody can touch blackr0ck because they own everything and almost everybody.
And I don't think they need to sell any tokens to them, they can all make transaction offline and off the books.
I think that blackr0ck plan is to own most bitcoin possible.

Where is the SEC when we need it? lol

Only following orders from their masters.

How do they even come up with his kind of token anyway? Does it have all of Bitcoin's validation rules in a smart contract? I didn't think so.

They didn't invent it, I think first one was Vitalik Buterin or some other guy from ethereum 
Everyone else is just doing copy-paste after that.

[NotATether]

I think that if they are selling ERC20 tokens to Blackrock, which will sell those tokens are BTC, SEC will just go after them! This shouldnt be allowed.

Nobody can touch blackr0ck because they own everything and almost everybody.
And I don't think they need to sell any tokens to them, they can all make transaction offline and off the books.
I think that blackr0ck plan is to own most bitcoin possible.

There is a point when you have bought a lot of bitcoins after which buying more coins will not actually be of any use to you, it is about control from then on.

It works the same with dollars, and every other currency.

Perhaps Blackrock wants to use its gigantic BTC holdings to influence the bitcoin network, but then again, that would only work in a staking model. Not in one that relies on mining for hashpower.

Or perhaps if they cannot control its legislative system then it would like to control its treasury (the price).

[bitmover]

Perhaps Blackrock wants to use its gigantic BTC holdings to influence the bitcoin network, but then again, that would only work in a staking model. Not in one that relies on mining for hashpower.

Or perhaps if they cannot control its legislative system then it would like to control its treasury (the price).

I don't see blackrock as such a bad actor... let's see what will happen in the future

They do not control the price of the other etf they have, such as stocks  from all over the world (and they do have a lot).

Their business is to make money in administration fees..

[dkbit98]

It works the same with dollars, and every other currency.

That is why blackr0ck owns almost everything, they even own countries believe it or not.

Perhaps Blackrock wants to use its gigantic BTC holdings to influence the bitcoin network, but then again, that would only work in a staking model. Not in one that relies on mining for hashpower.

This is only partially true.
If you own big share of anything you can than easily manipulate price.
You can also pay a lot of coins and sponsor negative protocol changes that benefits them.
They could bribe a lot of people to change narrative about bitcoin, maybe even turning it into PoS or something much worse.
This is what they are doing with all other assets, so there is no reason why bitcoin would be any different for them.

[lemar00]

Based on the concept of cbBTC, wBTC, etc. They are all not good for Bitcoin, and that also includes the so-called Bitcoin spot ETF. Although, they help Bitcoin gain more awareness and trust within the institutional banking space but their main purpose is to drift the attention of BTC enthusiasts to their token concept ( cbBTC, wBTC, etc.) which is to enslave the people.

[dkbit98]

Based on the concept of cbBTC, wBTC, etc. They are all not good for Bitcoin, and that also includes the so-called Bitcoin spot ETF. Although, they help Bitcoin gain more awareness and trust within the institutional banking space but their main purpose is to drift the attention of BTC enthusiasts to their token concept ( cbBTC, wBTC, etc.) which is to enslave the people.

I don't buy the awareness thing and I never heard about anyone getting to know about Bitcoin for the first time with cbBTC, wBTC or any other IOU tokens like that.
This tokens are only good for people who created them because they have full control over them.
If Coinbase gets hacked or close business all this tokens are going to die also.