The post Coinbase Faces Backlash and Lawsuit Over wBTC Delisting appeared on BitcoinEthereumNews.com.

Coinbase’s asset-agnostic policy faces scrutiny over wBTC delisting and cbBTC launch. BiT Global’s lawsuit highlights concerns over fairness in crypto exchange policies. wBTC growth persists despite Coinbase’s delisting and rise of competitor cbBTC. Tron founder Justin Sun questioned Coinbase’s decision to delist wrapped Bitcoin (wBTC), sparking a debate about the exchange’s listing policies and the future of tokenized Bitcoin. This comes in light of a statement from Coinbase CEO Brian Armstrong, who previously emphasized the company’s dedication to listing all legally permissible assets.  Armstrong explained that Coinbase’s approach prioritizes safety, legality, and fostering innovation, operating without opinions on an asset’s value. This commitment to an asset-agnostic model, he said, aligns with the principles of free markets and consumer choice, which are key drivers of growth in the crypto economy. The Coinbase and wBTC Controversy Coinbase’s recent decision to delist wrapped bitcoin (wBTC) while launching its competing tokenized bitcoin, cbBTC, has sparked debate about its adherence to these principles. The delisting, announced in November 2024, came after a periodic review of its listing standards. Coinbase said the removal was due to wBTC’s failure to meet these standards. However, critics argue that the timing, which coincides with the rise of cbBTC, raises questions about the integrity of the process. cbBTC, which operates on Ethereum and Coinbase’s Base network, is now the second-largest tokenized bitcoin. BiT Global’s Legal Action Against Coinbase BiT Global, a key player in the wBTC ecosystem and linked to Justin Sun, has filed a lawsuit against Coinbase. The company claims the delisting is anti-competitive and violates multiple state and federal laws.  They argue this move unfairly benefits cbBTC while undermining wBTC’s market position. The lawsuit highlights that Coinbase continues to list memecoins of questionable value, raising concerns about the consistency of its listing standards. Impact and Implications Despite the…

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Filed under: News - @ December 14, 2024 2:24 pm