Coinbase Introduces Proof of Reserves for cbBTC to Enhance Transparency
Coinbase has launched Proof of Reserves (PoR) for its cbBTC token, ensuring each cbBTC is backed 1:1 by Bitcoin. Key details include:
- Coinbase holds 26,525.15 BTC for a supply of 26,461.05 cbBTC.
- Distribution: 16,080 cbBTC on Ethereum, 7,655.391 on Base, 2,673.489 on Solana, and 51.395 on Arbitrum.
- Coinbase disclosed Bitcoin addresses; the largest wallet contains 690 BTC, with other wallets holding 480.984 BTC each.
This initiative follows criticism from Justin Sun regarding cbBTC's transparency and risk of centralized control. He highlighted:
- Lack of audits could lead to asset seizures under government subpoena.
- Concerns over potential freezing of balances.
Despite PoR efforts, skepticism persists among users, particularly due to past issues with Solana transactions on the platform. Users reported:
- Delays in Solana deposits/withdrawals exceeding 14 hours.
- Speculation that Coinbase was staking SOL without user consent.
Coinbase attributed delays to technical issues, but users continue to seek greater transparency and accountability in managing their funds. The introduction of PoR for cbBTC aims to rebuild trust amid ongoing scrutiny of centralized exchanges.