Justin Sun Calls for Coinbase to Adopt PoR Following cbBTC Launch
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
In the wake of Coinbase’s launch of the wrapped Bitcoin token, cbBTC, Tron founder Justin Sun has raised concerns over Coinbase’s transparency practices, calling for the exchange to implement Proof-of-Reserve (PoR).
While cbBTC saw immediate success, reaching a $100 million market cap within 24 hours, Sun believes that Coinbase’s refusal to adopt PoR raises serious concerns about transparency and long-term security.
Justin Sun’s demands for Coinbase to adopt Proof-of-Reserve came from widespread speculation surrounding the launch of cbBTC, Coinbase’s newly introduced wrapped Bitcoin token.
This product, designed to operate on Ethereum and the Layer-2 scaling solution Base, allows users to transfer their Bitcoin holdings on a 1:1 ratio with cbBTC.
Sun’s criticisms were sparked by Coinbase’s outright dismissal of the possibility of implementing PoR, a mechanism widely adopted by major exchanges like Binance to offer a real-time view of their asset reserves.
Coinbase CEO Brian Armstrong refuted rumors suggesting the company had issued Bitcoin IOUs to BlackRock, the prominent asset manager tied to a spot Bitcoin ETF.
Armstrong claimed PoR was unfeasible, prompting Sun to question the exchange’s unwillingness to follow other crypto platforms’ footsteps.
Baldilocks here.
Not sure what this is all about TBH. All ETF mints and burns we process are ultimately settled onchain. Institutional clients have trade financing and OTC options before trades are settled onchain. This is the norm for all our institutional clients. All funds…
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