Coinbase’s Latest Wrapped Bitcoin Token Surpasses $100 Million Market Cap on Debut
Coinbase, a prominent US-based cryptocurrency exchange, has recently introduced its new wrapped Bitcoin token, achieving a remarkable $100 million market cap on its first day.
The company’s creation, Coinbase Wrapped BTC (cbBTC), is an Ethereum-based token backed by Bitcoin (BTC), designed to enhance users’ decentralized finance (DeFi) interactions.
Trading data from CoinGecko reveals that cbBTC commenced trading on September 12th, swiftly reaching a market cap exceeding $100 million the following day.
Coinbase elaborated on how BTC holders can leverage the wrapped version of Bitcoin to facilitate their DeFi engagement, stating, “cbBTC removes a key point of friction by allowing customers to use Bitcoin they already hold in new ways on-chain.”
The process involves automatically converting BTC to cbBTC when transferred from Coinbase to an address on Base or Ethereum, and vice versa when receiving cbBTC in Coinbase accounts.
However, not all reactions to cbBTC have been positive. Justin Sun, the founder of Tron (TRX), criticized the project for being too centralized and reliant on trust, citing concerns about audits and the potential for balances to be frozen.
As of the latest data, cbBTC ranks as the 402nd largest cryptocurrency, boasting a market cap exceeding $97.66 million.
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