New Chainlink Integration: Chainlink’s Proof of Reserve Added to 21BTC to Combat Malicious Minting Fears
In an effort to ease any worries over the stability of the Bitcoin wrapper, Chainlink’s proof of reserve will be added to 21BTC, according to a statement made on September 23 by 21.co, the parent company of cryptocurrency asset manager 21Shares. According to 21.co, the inclusion of cryptographic assurances confirming the backed-by nature of newly created tokens in 21BTC on Ethereum and Solana prevents malicious minting. The declaration coincides with a surge of doubt among major cryptocurrency investors over the security of the spot Bitcoin that underpins Bitcoin wraps, such as Coinbase Wrapped BTC (cbBTC) and Wrapped Bitcoin (WBTC).
Justin Sun’s Involvement in WBTC Transfer Raises Misappropriation Fears in Crypto Community
The multi-signature wallet containing the custodied Bitcoin was partially given to Hong Kong-based cryptocurrency exchange BiT Global on August 9 by BitGo, the cryptocurrency custodian holding WBTC‘s Bitcoin capital.
This announcement has proven controversial due to the involvement of Justin Sun, with many in the ecosystem expressing concern over his ‘affiliated projects show worrying signs of possible misappropriation’ of collateral,
Threshold, a rival Bitcoin wrapper
The decentralized finance (DeFi) network Sky, formerly known as Maker, decided to remove WBTC from its system. Since its September 12 introduction, Coinbase‘s cbBTC has gained significant traction and is now the third-largest wrapped BTC token. Speculation regarding the security of cbBTC’s BTC backing has persisted since then. A filing from asset management firm BlackRock on September 16, seeking faster BTC withdrawal timings, largely triggered this. Rumors that Coinbase planned to not pay out cbBTC investors for Bitcoin backing lost due to a cybersecurity exploit were refuted by Coinbase Chief Legal Officer Paul Grewal on September 22.
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