DefiLlama Founder Criticizes Coinbase for Lack of Transparency in cbBTC Reserves

COINOTAG has reported an important revelation on September 23. DefiLlama founder, 0xngmi, conveyed via social media that it is standard for almost every cross-chain bridge to provide proof of reserves, ensuring that users can verify if the issued tokens are sufficiently supported. This is a fundamental practice observed by bridges such as WBTC. However, it appears that Coinbase has not adhered to this norm. According to 0xngmi, cbBTC lacks the requisite transparency and, consequently, does not meet DefiLlama’s listing standards due to the inability to verify its Total Locked Volume (TVL). Upholding its commitment to consistent and transparent criteria, DefiLlama has opted not to list Coinbase’s bridge project. The message underlines their practice of rigorous verification, further emphasizing that Coinbase will not be an exception to these stringent standards.