Coinbase, the world's second-largest cryptocurrency exchange, is launching a "wrapped" version of Bitcoin. It will do so on Ethereum's second layer (L2) network called Base, which is developed by the exchange itself.  

Through a post on X, the platform's communications team reported that this new token would receive the ticker “cbBTC” although it did not detail any exact launch date, only reporting: “Coming soon.”  

Base creator Jesse Pollak then followed suit, writing on his personal account: “To say it out loud: I love Bitcoin, I am very grateful for its role as a driver of cryptocurrencies and we are going to build a massive bitcoin economy on Base.” 

It is worth noting that Base has been operational since 2023 and is positioned as another competitor within the Ethereum ecosystem, with the aim of promoting the scalability of the main network and providing a space for new decentralized applications (dApps).  

Once cbBTC is up and running, it will compete directly with Wrapped Bitcoin (WBTC), developed by BitGo, a digital asset custody company, in conjunction with other companies.  

Controversy over BitGo's alliance with Justin Sun

The development of the Base token comes amid controversy surrounding BitGo's partnership with BiT Global, a Hong Kong-based custody platform owned by Tron founder Justin Sun.  

The announcement sparked negative comments from the community. Sun was accused of fraud and manipulation. In addition, some of his platforms were targeted by security incidents, such as hacking and subsequent loss of funds, which led to a loss of user trust.  

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It is worth recalling what happened with Sun's exchange, Poloniex, which in November 2023 suffered a cybersecurity attack that left a negative balance of 125 million dollars. As for the Tron network , it also faced criticism for its centralization and distribution of its native TRX token.  

The news sparked a debate on the forums of MakerDAO, the decentralized finance project that manages the protocol for issuing the DAI stablecoin. In that discussion, the executive proposal to stop new loans collateralized by WBTC was highlighted. 

This is a key fact because DAI is an Ethereum ERC-20 token that is generated from several asset deposits, one of which is WBTC.  

Sun himself addressed his involvement in the partnership with BitGo, explaining that “there have been no changes in WBTC compared to before.” He added: 

“My personal stake in WBTC is entirely strategic. I do not control the private keys to WBTC reserves and cannot move any BTC reserves.” 

Justin Sun, lead developer of the Tron network.