DeXe (dexe) 
Justin Sun Criticizes Coinbase’s Centralized Approach to Tokenized Bitcoin
Justin Sun, the founder of TRON, has publicly criticized Coinbase’s centralized approach to its tokenized Bitcoin product, cbBTC. Sun’s comments come after World Liberty Financial chose to adopt Wrapped Bitcoin (wBTC) over Coinbase’s cbBTC for its Bitcoin reserves.
Custody Practices and Proof of Reserves
Sun took aim at Coinbase’s proof of reserves, blasting the system as insufficient. He argued that relying on Coinbase’s custodial services poses a risk to users, as their Bitcoin reserves under cbBTC could be frozen or confiscated at the discretion of the exchange. Sun emphasized the importance of decentralized ownership, stating “not your keys, not your coins!”
Sun also warned of potential bias in Coinbase’s operations, claiming that access to funds could hinge on individual relationships with the exchange’s legal team. As of now, Coinbase has not publicly responded to Sun’s remarks.
World Liberty Financial’s Adoption of wBTC
Reports revealed that World Liberty Financial made on-chain purchases of wBTC, a product issued by BitGo. Data from Arkham Intelligence shows that an address linked to World Liberty Financial holds $56.4 million in WBTC, with Ethereum topping the list at over $181 million. There are no public records indicating that World Liberty Financial holds cbBTC.
Key Takeaways:
- Justin Sun criticized Coinbase’s centralized approach to tokenized Bitcoin.
- World Liberty Financial chose to adopt Wrapped Bitcoin (wBTC) over Coinbase’s cbBTC for its Bitcoin reserves.
- Sun emphasized the importance of decentralized ownership and the risks of relying on custodial services.
- World Liberty Financial holds $56.4 million in WBTC and over $181 million in Ethereum.
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