World Liberty Financial Exchanges $10 Million in cbBTC for WBTC
The World Liberty Financial (WLFI) platform, a decentralized financial (DeFi) initiative supported by Donald Trump's family, has recently conducted significant on-chain transactions. WLFI exchanged 102.9 cbBTC, valued over $10 million, for 103.15 WBTC.
This transaction has generated considerable interest within the crypto community due to recent developments. cbBTC is a Bitcoin product backed by Coinbase Global Inc that launched on Ethereum and its layer two scaling solution Base. Wrapped Bitcoin (WBTC), with a market cap exceeding $13.6 billion and a 24-hour trading volume of over $565 million, serves as a major Bitcoin product. BitGo, the original custodian of WBTC, announced it would distribute custody services to three projects, including BiT Global, registered in Hong Kong and partnered with Justin Sun and the Tron ecosystem.
World Liberty Financials under Justin Sun
World Liberty Financial is conducting WLFI token sales for fundraising, during which Justin Sun, founder of the Tron network, invested $30 million and became an advisor to the company. Tensions between Sun and Coinbase have persisted, especially after Coinbase delisted WBTC, citing concerns over potential ties to Sun and allegations related to money laundering and market manipulation.
A US court upheld Coinbase's decision to proceed with the delisting after BiT Global lost a legal challenge regarding this issue.
BiT Global lost. Today they asked the Court to order us to stop from delisting wBTC to protect our customers. Today the Court said no. We appreciate the Court’s consideration and the outstanding advocacy of Sonal Mehta and her team at @WilmerHale.
— paulgrewal.eth (@iampaulgrewal) December 18, 2024
Sun criticized Coinbase for centralizing Bitcoin through cbBTC features, such as lack of proof of reserve and asset freezing capabilities.
Bigger Picture
The anticipated Trump administration may promote the adoption of digital assets and Web3 protocols, aiming to create equitable conditions for all participants. Clear regulations from Congress could address ongoing uncertainties in the cryptocurrency sector.
The cryptocurrency industry is projected to experience substantial growth, potentially rivaling gold's market value soon. Additionally, several countries are considering establishing strategic Bitcoin reserves, following possible initiatives by the United States under the Trump administration.