Coinbase’s New Wrapped Bitcoin Token Goes Live, Hitting $100,000,000 Market Cap in First Day

US crypto large Coinbase has efficiently gone stay with the launch of its wrapped Bitcoin token with a market cap of $100 million.

The corporate’s Coinbase Wrapped BTC (cbBTC) is a Bitcoin (BTC)-backed, Ethereum (ETH)-based token that goals to assist customers streamline their decentralized finance (DeFi) expertise.

Knowledge from CoinGecko shows that cbBTC started buying and selling on September 12 earlier than reaching a market capitalization of over $100 million the subsequent day.

Coinbase lately defined how BTC holders can use the wrapped model of the corporate’s crypto king to streamline their DeFi expertise.

“cbBTC removes a key level of friction by permitting clients to make use of the Bitcoin they already personal on-chain in new methods. cbBTC is constructed to be seamlessly appropriate with DeFi functions, so customers can now leverage new DeFi use circumstances, similar to offering their Bitcoin as liquidity to DeFi protocols, or utilizing it as collateral to borrow different crypto property. .

When Coinbase customers ship their BTC from Coinbase to an deal with on Base or Ethereum, that BTC is robotically transformed 1:1 to cbBTC. When customers obtain cbBTC into their Coinbase accounts, it will likely be transformed 1:1 from cbBTC to BTC.”

Tron (TRX) founder Justin Solar criticized cbBTC stated Coinbase’s new mission was too centralized and primarily based on belief.

“cbBTC has no Proof of Reserve, no audits, and may freeze anybody’s stability at any time. Basically it is simply ‘belief me.’ Any US authorities subpoena may confiscate all of your BTC. There isn’t a higher illustration of central financial institution Bitcoin than this. It’s a darkish day for BTC.”

On the time of writing, cbBTC is the 402nd largest cryptocurrency with a market cap of over $97.66 million.

Do not miss a beat – Subscribe to obtain electronic mail alerts straight to your inbox

Test value motion

Comply with us additional X, Facebook And Telegram

Surf to the Each day Hodl combine

Generated picture: DALLE3