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.
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.
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.
Sun’s Push for Proof-of-Reserve: What Is Coinbase Covering?