Tron’s Justin Sun Demands Proof-of-Reserve From Coinbase Amid Controversy

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As a seasoned analyst with over two decades of experience in the finance industry, I find myself intrigued by the ongoing debate between Justin Sun and Coinbase regarding Proof-of-Reserve (PoR). While it’s true that PoR has been gaining traction in the crypto space, it’s surprising to see such resistance from a prominent player like Coinbase.

Tron founder Justin Sun has once again stressed his demand for a Proof-of-Reserve from Coinbase amid the launch of its new product aka cbBTC in the market. He further questioned that when all exchanges in the industry have implemented Proof-of-Reserve (PoR) why is the exchange saying that it’s not feasible?

Tron Founder Justin Sun Slams Coinbase on PoR Approach

Justin Sun stated that there’s been a growing adoption of the Proof of Reserves (PoR) in the crypto industry with big market players like binance adopting this strategy. He expressed confusion as to why is the exchage saying that it is not feasible. Sun’s comments came soon after Coinbase denied rumors of issuing Bitcoin IOUs to BlackRock.

According to senior Bloomberg ETF analyst Eric Balchunas, BlackRock’s participation in the cbBTC project increases its credibility. Furthermore, he stated that, given its status as the world’s largest asset manager, BlackRock would not allow any mishandling of Bitcoin reserves when it comes to their safekeeping.

Highlighting this point, Justin Sun expressed that the cryptocurrency community values transparency more than seeking perfection. Furthermore, he mentioned that disclosing all wallet addresses is essentially an easy endeavor.

In his continued remarks, Tron’s founder emphasized that, as demonstrated in the FTX case, relying on auditing firms for security doesn’t necessarily ensure funds remain on the blockchain. He also pointed out that being a public company does not provide immunity against bankruptcy, using Signature Bank’s decline as an example. As a result, Sun is of the opinion that if Coinbase adopts Proof of Reserve (PoR), it would be a move towards self-regulation, enhancing trust within the cryptocurrency industry.

Once every trade in the market has adopted Proof of Reserves (PoR), it’s surprising that Coinbase argues against its feasibility. For instance, Binance has fully embraced PoR as you can see here: . The community isn’t asking for a flawless solution from Coinbase overnight, but rather seeking a gradual implementation instead.

— H.E. Justin Sun(hiring) (@justinsuntron) September 18, 2024

Will BlackRock Continue to Borrow Bitcoin Without Collateral?

During the recent weekend, well-known crypto expert Tyler Durden brought up concerns regarding Coinbase permitting BlackRock to borrow Bitcoin without any collateral. Additionally, he expressed skepticism about potential market manipulation that might enable BlackRock to gain profits from the subsequent price changes.

Despite limited response from the exchange regarding these accusations, the cryptocurrency community anticipates that it will provide clarity about its Bitcoin holdings in due course.

Alternatively, Bitcoin’s value has surged beyond $60,500 before the FOMC meeting on Wednesday, hinting at potential strength. The upcoming Fed interest rate decision could significantly influence Bitcoin’s future path.

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2024-09-18 09:37