Unknown Crypto Whale Acquires WBTC Amid Ongoing Issues

A mysterious wallet has recently accumulated over $118 million in Wrapped Bitcoin (WBTC) within just one week, as reported by blockchain analytics service Lookonchain.

Recent Activity

In a post on August 19, Lookonchain revealed that this unknown “whale” wallet had purchased more than 347 WBTC, valued at approximately $16 million based on current pricing, within a mere 12-hour period.

This acquisition contributes to the wallet’s overall WBTC holdings, which now total 1,953 WBTC ($118 million) at an average price of $58,853.

Context of the Purchases

The significant accumulation of WBTC is occurring amidst ongoing debates surrounding the token’s ownership structure.

On August 9, BitGo, the organization responsible for Wrapped Bitcoin, announced a plan to transfer control of WBTC to a partnership that includes itself, BiT Global, an investment manager based in Hong Kong, and the Tron ecosystem.

The following day, Block Analitica, a crypto risk management company, proposed on MakerDAO’s forum to halt all new WBTC debts and prevent borrowing against WBTC collateral.

By August 16, MakerDAO approved this proposal, effectively prohibiting WBTC borrowing on the Sparklend platform.

Future Proposals

In light of BitGo’s controversial actions, lending platform Aave is reportedly preparing to propose an alternative for WBTC transactions by introducing Threshold Network’s TBTC as a substitute for borrowing and lending WBTC.

Meanwhile, US cryptocurrency exchange Coinbase hinted at launching a new product referred to as “cbBTC,” which has sparked speculation among industry analysts about the possibility of them creating their own version of wrapped Bitcoin.

Rena Shah, the COO of Trust Machines, has stated that the potential for cbBTC represents a significant opportunity for promoting Bitcoin-based decentralized finance (DeFi), suggesting that the existing Coinbase user base could be pivotal for onboarding users into Bitcoin DeFi.

• Details:
  • BitGo transfers control of WBTC to a joint venture
  • Block Analitica proposes halting new WBTC debts
  • Aave plans to introduce TBTC as an alternative
  • Coinbase hints at cbBTC launch