tl;dr
Coinbase has introduced Proof of Reserves (PoR) for its wrapped Bitcoin token, cbBTC, to assure users that each cbBTC is backed 1:1 by Bitcoin (BTC) held by the exchange. The PoR data reveals a total reserve of 26,525.15 BTC, with a corresponding cbBTC supply of 26,461.05 tokens. The distribution of...
Coinbase has introduced Proof of Reserves (PoR) for its wrapped Bitcoin token, cbBTC, to assure users that each cbBTC is backed 1:1 by Bitcoin (BTC) held by the exchange. The PoR data reveals a total reserve of 26,525.15 BTC, with a corresponding cbBTC supply of 26,461.05 tokens. The distribution of cbBTC across various networks and specific Bitcoin addresses and their balances have also been disclosed. This move follows criticism from the cryptocurrency community, with ongoing user apprehensions regarding transparency and operational integrity. The implementation of cbBTC Proof of Reserves is seen as a step toward rebuilding trust, but continued scrutiny suggests that users remain vigilant about managing and securing their assets on centralized exchanges. According to the PoR data, the Coinbase exchange holds a total reserve of 26,525.15 BTC, with a corresponding cbBTC supply of 26,461.05 tokens. The distribution of cbBTC across various networks is as follows: Ethereum hosts 16,080 cbBTC, Base contains 7,655.391 cbBTC, Solana holds 2,673.489 cbBTC, and Arbitrum has 51.395 cbBTC. Coinbase also disclosed the specific Bitcoin addresses and their balances, enhancing the transparency of its reserves. According to the data, the wallet holding the largest portion of these reserves contains 690 BTC, worth approximately $65.8 million at current rates. Meanwhile, 40 wallets hold 480.984 BTC each. The remaining BTC is distributed among several other wallets. This development comes on the heels of criticism from prominent figures in the cryptocurrency community. Justin Sun, founder of Tron, previously lambasted cbBTC for its perceived lack of transparency and centralization. While Coinbase’s introduction of PoR for cbBTC addresses some transparency issues, user apprehensions persist. The user references recent incidences involving delays in Solana (SOL) transactions on the platform, causing execution waits exceeding 14 hours. This led to speculation that Coinbase might be staking users’ SOL without consent, causing delays due to the unstaking process. Such practices have raised questions about the exchange’s liquidity and operational integrity. In light of these events, the cryptocurrency community continues to advocate for increased transparency and accountability from centralized exchanges. Coinbase’s implementation of cbBTC Proof of Reserves is a step toward rebuilding trust. However, ongoing scrutiny suggests that users remain vigilant about managing and securing their assets on such platforms.