W3BStation
Markets
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
08/19/2024

Anonymous Crypto Whales Are Accumulating WBTC Amid Ownership Controversy

According to Lookonchain, an anonymous wallet accumulated over $118 million worth of Wrapped Bitcoin in the past week. An anonymous wallet has been buying up large amounts of Wrapped Bitcoin (WBTC) amid ongoing controversy over the token's ownership structure. In an X post on August 19, blockchain analytics service Lookonchain reported that an anonymous whale address had purchased 347 WBTC — worth $16 million at current prices — just hours earlier. Source: Lookonchain That WBTC was added to the wallet's growing WBTC reserves, which have now accumulated a total of

Anonymous Crypto Whales Are Accumulating WBTC Amid Ownership Controversy

According to Lookonchain, an anonymous wallet accumulated over $118 million worth of Wrapped Bitcoin in the past week.

An anonymous wallet has been buying up large amounts of Wrapped Bitcoin (WBTC) amid ongoing controversy over the token's ownership structure.

In an X post on August 19, blockchain analytics service Lookonchain reported that an anonymous whale address had purchased 347 WBTC — worth $16 million at current prices — just hours earlier.

Source: Lookonchain

That WBTC was added to the wallet's growing WBTC reserves, which have now accumulated a total of 1,953 WBTC (approximately $118 million) at an average price of $58,853.

These massive WBTC purchases come amid mounting controversy over the ownership structure of the Wrapped Bitcoin token.

On August 9, BitGo — the team behind Wrapped Bitcoin — announced plans to transfer control of WBTC to a joint venture comprising itself, Hong Kong-based investment manager BiT Global, and Justin Sun's Tron.

On August 10, crypto risk management firm Block Analitica (BA) published a proposal on MakerDAO's governance forum calling on the protocol to wind down all new WBTC debt positions and block new borrowing against WBTC collateral.

Related: BitGo CEO argues WBTC's security remains unchanged despite concerns

On August 16, MakerDAO approved and executed the proposal, banning WBTC borrowing on the Sparklend platform.

Lending giant Aave is also preparing to propose an alternative to WBTC borrowing and lending, with plans to offer a replacement Wrapped Bitcoin token — Threshold Network's TBTC.

Following BitGo's controversial move, US crypto exchange Coinbase hinted at the launch of a new product called "cbBTC," which some crypto analysts speculated could be the exchange gearing up to launch its own Wrapped Bitcoin token.

Rena Shah, CEO of Bitcoin software company Trust Machines, told Cointelegraph that the new token could drive adoption of native Bitcoin decentralized finance (DeFi).

"The opportunity for cbBTC, drawing entirely on Coinbase's existing user base, is a massive onboarding opportunity for Bitcoin DeFi," Shah said.