Coinbase cbBTC is bad for Bitcoin!

[dkbit98]

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

[rdluffy]

Why hasn't Coinbase launched on its own network (Base)?

I've used WBTC on the Polygon network in some cases, and in others I've used BTCB from BSC (Binance Smart Chain).
Sometimes it's good to use DeFi

I didn't know about this project of Coinbase

[Mia Chloe]

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

+1 for the information and warning dkbit98. Firstly let me start by saying that only someone that's a total novice in the crypto space and ecosystem will easily fall for these lies. Bitcoin is a decentralised network and isn't some centralised network like Ethereum that can be used as a host for almost any coin or token. I think one mistake that people make is investing in coins with doing an form of research. Before investing in any crypto including bitcoin it's very important to research just to avoid investing in a scam project or losing your coins due to poor security.

[dkbit98]

Why hasn't Coinbase launched on its own network (Base)?

According to their blog article I think they did release this crap token both on ethereum and on their Base network, but I wouldn't use this on any network.
I never even heard about Base network and I don't know anything about it, but I am sure it's not decentralized blockchain, and it's probably something like binance chain.
Just listen to this blatant lie about this crap and billion people adoption 

cbBTC is moving money forward. We’re one step closer to bringing 1 billion people onchain.

https://www.coinbase.com/blog/coinbase-wrapped-btc-cbbtc-is-now-live

[Zed0X]

Yeah, this looks like another trap but I guess traders in the US will still take advantage of this. Since Coinbase is not budging against SEC, their users will probably not feel afraid with the exchange's own wrapped BTC.

[_act_]

I've used WBTC on the Polygon network in some cases, and in others I've used BTCB from BSC (Binance Smart Chain).
Sometimes it's good to use DeFi

That is true, using DeFi to earn money is good. But it is good to know that these coins are not bitcoin but backed by bitcoin is what we know. It is better not to trust the tokens for long term holding. I will prefer to just hold bitcoin instead. If something bad happened to bitcoin, that bad thing will happen to these tokens but if someone bad happened to the tokens, bitcoin will not be affected.

[bitterguy28]

I've used WBTC on the Polygon network in some cases, and in others I've used BTCB from BSC (Binance Smart Chain).
Sometimes it's good to use DeFi

That is true, using DeFi to earn money is good. But it is good to know that these coins are not bitcoin but backed by bitcoin is what we know.

i can also recognize that there really are benefits to holding tokens that are backed by bitcoin this allows more people to be able to buy bitcoin somehow even though it’s not really bitcoin they own and they need to understand that it’s still very different to hold tokens backed by btc and to hold btc itself

If something bad happened to bitcoin, that bad thing will happen to these tokens but if someone bad happened to the tokens, bitcoin will not be affected.

another factor is also where you can hold these tokens if holding these tokens in a centralized platform does not make you a bit worried then you should think again anything can happen to your tokens under the hands of a centralized platform

[ABCbits]

The fact there are so many wrapped/tokenized Bitcoin shows many people don't care about decentralization or self-custody.

Just listen to this blatant lie about this crap and billion people adoption 

cbBTC is moving money forward. We’re one step closer to bringing 1 billion people onchain.

https://www.coinbase.com/blog/coinbase-wrapped-btc-cbbtc-is-now-live

Aside from centralization, who would actually pay cost to run the full node?

[tranthidung]

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

Don't use cbBTC and similar junk tokens

Coinbase are late because there are many Wrapped tokens that were created with Bitcoin in their token names in order to help their developers getting money.

These tokens are not bitcoin but this fact is only aware by senior people in this market. With newbies, they can know it or not know it but many of them don't know about risk or ignore risk of these tokens.

Risk of peg loss and no matter what price actual bitcoin is exchanged on the market, these token prices can depeg and fall to very low price even $0.

Coinbase are late, as said, but their participation in this trend is shameful. As a big and senior company in this market, they can do better by being responsible of education about Bitcoin. This latest product from Coinbase shows that they only care about money.

Why wrapped bitcoin can depeg?

[rdluffy]

i can also recognize that there really are benefits to holding tokens that are backed by bitcoin this allows more people to be able to buy bitcoin somehow even though it’s not really bitcoin they own and they need to understand that it’s still very different to hold tokens backed by btc and to hold btc itself

A good use of a BTC token on another network is the possibility of using it on DeFis, not for holding in my opinion

To put it briefly, you may have BTC and want to use it as collateral to borrow dollars to buy more BTC and leverage yourself
Then you can convert these BTC into tokens, like WBTC for example, and use them in a lend/borrow protocol
This has to exist because there's no way to do this so far on the main BTC network

[dkbit98]

Yeah, this looks like another trap but I guess traders in the US will still take advantage of this. Since Coinbase is not budging against SEC, their users will probably not feel afraid with the exchange's own wrapped BTC.

I think Coinbase still has one or more active lawsuits against SEC, so things are not that clear for traders from US or any other countries.
And issuing and accepting tokens like this is borderline scam for me, especially in combination with blacrock manipulations.

Aside from centralization, who would actually pay cost to run the full node?

It's not that expensive and hard for anyone to run their own node and SSD drives are cheaper than ever, but that is unrelated with this topic.

[TomPluz]

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.

[dkbit98]

Coinbase now announced that cbBTC token is going to be released on Solana blockchain after they released it on ethereum blockchain.
I wouldn't be surprised if they try to move this wrapped crap to tron, binance chain and all other blockchains.
This is a takeover attempt by c0inbase and blackr0ck.
https://cointelegraph.com/news/coinbase-s-cb-btc-wrapped-bitcoin-coming-to-solana

[Legion]

I've used WBTC on the Polygon network in some cases, and in others I've used BTCB from BSC (Binance Smart Chain).
Sometimes it's good to use DeFi

That is true, using DeFi to earn money is good. But it is good to know that these coins are not bitcoin but backed by bitcoin is what we know. It is better not to trust the tokens for long term holding. I will prefer to just hold bitcoin instead. If something bad happened to bitcoin, that bad thing will happen to these tokens but if someone bad happened to the tokens, bitcoin will not be affected.

It certainly makes sense to see bitcoin as a sustainable long-term store of value, rather than mere tokens that are linked to bitcoin and recognized for their stability. While DeFi provides an attractive route to profit, it’s important to understand the risk variations between bitcoin and tokens. Therefore, you are wise to put more trust in bitcoin as your chief asset. This contributes to lowering the risk for the future, letting for more prudent employment of the possibilities in DeFi.

[yhiaali3]

Yes, I heard about the Coinbase garbage called cbBTC.

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 added:
In the end, it comes down to trust only, as the US government can seize all your Bitcoins upon request, and he concluded his statement with a scathing sentence that:
This digital currency cbBTC and Coinbase can be represented as the government’s central bank and its traditional fiat currency.

https://www.mitrade.com/insights/news/live-news/article-3-360564-20240914