Coinbase Disables wBTC Trading After Landmark Victory

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As a seasoned researcher and avid follower of the cryptocurrency market, I find myself both intrigued and concerned by Coinbase’s decision to delist Wrapped Bitcoin (wBTC). Having closely watched the crypto landscape evolve over the years, it seems that this move could signal a shift in the exchange’s approach to listing assets.

The U.S.-based cryptocurrency trading platform, Coinbase Global Inc., has revealed it’s temporarily halted trading for Wrapped Bitcoin (wBTC). However, they emphasized that this change doesn’t mean wBTC will no longer be available to users. Instead, the focus is on allowing token holders to withdraw their funds whenever they wish.

Coinbase To End the wBTC Era

According to their announcement, Coinbase continually checks the assets listed on their platform to make sure they adhere to their listing criteria. They recently decided to stop supporting wBTC because of their latest evaluation, and this change took effect at 12 pm Eastern Time.

According to the statement, they temporarily halted trading for the wrapped Bitcoin token across all platforms, including both basic and sophisticated user interfaces at Coinbase.com. Furthermore, they mentioned that they also paused trading support for this token not only on their primary exchange (Coinbase) but also on Coinbase Exchange and Coinbase Prime.

We’ve switched our wBTC trading to a mode where only limit orders are allowed. This means you can place or cancel limit orders, and these orders might match under certain conditions.

If you have any questions regarding this update, please visit:

— Coinbase Assets (@CoinbaseAssets) November 19, 2024

In response to the process of removing certain tokens, the platform mentioned that it shifted the order books for those tokens to a mode where only limit orders can be placed and canceled. This means that some trades may still occur, but Coinbase emphasized that only limited orders can be made during this time. Unlike regular delistings with specified withdrawal periods, the exchange assured users that they can access their funds at any point in time.

A Controversial Business Deal

The wrapped Bitcoin token came into the spotlight last this week after a Justin Sun-linked firm responsible for its issuance BiT Global sued the exchange. BiT Global alleged that the exchange delisted the token to give competitive advantage to cbBTC.

As a crypto investor, I’ve been following the recent developments regarding Coinbase and their decision to delist wBTC. In their statement, Coinbase explained that the removal was due to concerns about potential market manipulation practices linked to Justin Sun. While some saw this as “guilt by association,” the court supported Coinbase’s stance, emphasizing its right to make such decisions. Notably, Coinbase announced this delisting just 24 hours after receiving a favorable ruling.

In the midst of its court victory, critics within the cryptocurrency community have criticized Coinbase for listing meme coins rather than more useful crypto projects. Additionally, they claim that the platform’s listing criteria are unclear, an issue that Coinbase has yet to explicitly respond to.

As a form of protest, Donald Trump-backed World Liberty Financial dropped cbBTC in favor of wBTC

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2024-12-19 21:33