Justin Sun’s Bold Claim: WBTC is the National Bitcoin Reserve—But Wait, There’s More!

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In a proclamation that echoes through the corridors of cryptocurrency, Tron’s illustrious founder, Justin Sun, has boldly asserted that Wrapped Bitcoin (WBTC) has ascended to the esteemed status of the United States’ national Bitcoin reserve.

This declaration surfaces amidst an unintentional rivalry between two Bitcoin wrappers—Bitgo’s WBTC and Coinbase’s cbBTC—wherein the DeFi project, backed by none other than Donald Trump, has expressed a keen interest in the former. Who knew Bitcoin could spark such a kerfuffle? 😏

Is WBTC the De Facto US National Bitcoin Reserve?

Sun, in his infinite wisdom, took to the vastness of social media to share his insights, illuminating the unwavering favor WBTC enjoys from the Trump-supported DeFi initiative, World Liberty Financial (WLFI). Ah, the sweet taste of political backing! 🍿

“WBTC has become the US national Bitcoin reserve in name. Is there any president other than Donald Trump who diligently buys Bitcoin daily? Trump is ‘the one and only Bitcoin president,’” Sun declared with a flourish, as if he were addressing the nation itself.

His remarks are rooted in a recent acquisition by World Liberty Financial, which has garnered enthusiastic endorsements from the Trump family. According to Lookonchain, the DeFi project snatched up an additional 94.94 WBTC, valued at a staggering $9.84 million on Thursday. Talk about a shopping spree! 🛒💰

Spot On Chain corroborated this extravagant tale, reporting that within three days, the fund had invested a whopping $56.82 million in 534.1 WBTC at an average price of $106,379. What a time to be alive in the world of crypto!

“The Trump team has chosen WBTC and decided to support it through action once again,” quipped Wrapped Bitcoin’s official X account, perhaps reveling in its newfound fame.

In a twist worthy of a soap opera, the DeFi venture divested its cbBTC portfolio of 102.9 tokens worth $10.4 million to acquire 103.15 WBTC. And just like that, Sun was appointed as an advisor to WLFI, further entrenching himself in this dramatic narrative. 🕵️‍♂️

With a wink and a nudge, Justin Sun took a jab at Coinbase, highlighting its perceived opacity and specifically targeting its Proof of Reserves (PoR) practices. How deliciously ironic! 🍽️

“Relying on Coinbase’s zero Proof of Reserves product means your BTC could be frozen or confiscated anytime. It’s entirely at the mercy of Paul Grewal [Coinbase CLO]. If he likes you, you’re safe. But if he doesn’t? Game over. That’s not how a secure blockchain infrastructure should operate—especially at the presidential level. So cbBTC was out,” Sun elucidated, channeling the spirit of a true crypto sage.

As the plot thickens, the Tron founder emerges as a fervent advocate for WBTC, particularly following BitGo’s custody overhaul. His enthusiasm is palpable, akin to a child in a candy store. 🍬

BitGo’s new multi-jurisdictional and multi-institutional custody model emphasizes security through decentralization, which, according to Sun, starkly contrasts with Coinbase’s approach. This fuels his relentless critique of cbBTC, which he seems to view as a house of cards. 🏰

“cbBTC lacks Proof of Reserve, no audits, and can freeze anyone’s balance anytime. Essentially, it is just ‘trust me.’ Any US government subpoena could seize all your BTC,” Sun wrote last September, sounding the alarm like a modern-day Paul Revere.

In summary, Coinbase’s cbBTC and BitGo’s WBTC have evolved into formidable market adversaries over the past several months. The recent suspension of WBTC trading by Coinbase has only intensified this fierce competition. It’s like watching two gladiators in an arena, with the crowd on the edge of their seats! 🏟️

Now, Coinbase faces a lawsuit alleging anti-competitive practices regarding WBTC. Will this be the final act in this riveting drama? Only time will tell! ⏳

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2025-01-23 21:17