Coinbase, the big name in US crypto, has launched its own version of Bitcoin called “cbBTC.” This new token is basically a Bitcoin-backed token that lives on the Ethereum network. Coinbase says it makes using DeFi (decentralized finance) easier for Bitcoin holders.
A Big Debut
cbBTC hit the market on September 12th and quickly reached a market cap of over $100 million. This means that people are already interested in this new token.
How It Works
Coinbase explains that when you send your Bitcoin from Coinbase to a special address on the Ethereum network, it automatically gets converted into cbBTC. When you get cbBTC back in your Coinbase account, it’s automatically converted back to Bitcoin.
Criticism from Tron Founder
Justin Sun, the founder of Tron, isn’t happy about cbBTC. He says it’s too centralized and relies on trust. He’s worried that Coinbase could freeze your cbBTC at any time and that the US government could seize it.
What’s Next?
cbBTC is currently the 402nd biggest cryptocurrency with a market cap of over $97 million. It’s still early days, and it’s unclear if this new token will be a success.
Remember: This is not financial advice. Always do your own research before investing in any cryptocurrency.
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