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BiT Global Sues Coinbase Over Delisting of Wrapped Bitcoin
In a shocking move, BiT Global has taken legal action against Coinbase, accusing the San Francisco-based exchange of unfairly planning to delist Wrapped Bitcoin (WBTC) in favor of its own rival product, Coinbase Wrapped BTC (cbBTC). The lawsuit claims that Coinbase’s decision to remove WBTC from its platform is part of a broader strategy to promote cbBTC and dominate the wrapped bitcoin market.
According to BiT Global, Coinbase’s actions are tantamount to an unfair business practice and violate federal and state laws. The company argues that by delisting WBTC, Coinbase is engaging in predatory tactics aimed at eliminating competition. This move has resulted in a 5% drop in WBTC circulation over the past two weeks.
BiT Global highlights Coinbase’s recent listing of meme coins and tokens, such as Dogwifhat (WIF), Pepe (PEPE), and Mog Coin (MOG), as evidence that the exchange prioritizes profitability over innovation or value. This move is seen as a deliberate attempt to promote cbBTC and suppress WBTC.
The controversy surrounding this issue highlights the crucial role WBTC plays in decentralized finance (DeFi). As an essential component of DeFi, WBTC enables Bitcoin holders to interact with Ethereum-based applications despite the two assets being incompatible on a technical level. Coinbase’s launch of cbBTC in September positioned it as an alternative to WBTC, leading to the present legal dispute.
The lawsuit also sheds light on the company’s partnership with BitGo, the custodian behind WBTC. Some members of the DeFi community have expressed concerns about Justin Sun, founder of the Tron network, involvement with BiT Global, suggesting that it introduces risks due to his influence.
In this ongoing battle between two major players in the cryptocurrency market, investors and users are eagerly waiting for a resolution.
Source: www.crypto-news.net
