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Justin Sun recently proclaimed Wrapped Bitcoin (WBTC) as the potential national Bitcoin reserve of the U.S., fueled by support from Donald Trump’s DeFi initiative, World Liberty Financial (WLFI).
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In a remarkable development, WLFI made an impressive acquisition of 534.1 WBTC, amounting to $56.82 million within a mere three days, showcasing its confidence in BitGo’s WBTC.
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Sun criticized Coinbase’s cbBTC for its perceived lack of transparency and inadequate Proof of Reserves (PoRs), while reaffirming the security of WBTC’s decentralized custody approach.
This article explores Justin Sun’s assertion that Wrapped Bitcoin (WBTC) is becoming the U.S. national Bitcoin reserve, amid significant support from Donald Trump’s DeFi project.
Is WBTC the De Facto US National Bitcoin Reserve?
Justin Sun articulated his views on social media, shedding light on the escalated preference for WBTC marked by activities from World Liberty Financial (WLFI), a project associated with Donald Trump.
“WBTC has become the US national Bitcoin reserve in name. Is there any president other than Donald Trump who diligently buys Bitcoin daily? Trump is ‘the one and only Bitcoin president,’” Sun stated.
This statement is bolstered by WLFI’s recent move to acquire additional WBTC, as confirmed by Lookonchain, which reported a purchase of 94.94 WBTC valued at roughly $9.84 million on Thursday.
According to Spot On Chain, the total investment by WLFI in just three days hit $56.82 million, involving 534.1 WBTC obtained at an average price of $106,379.
“The Trump team has chosen WBTC and decided to support it through action once again,” remarked Wrapped Bitcoin’s official X account.
Earlier in December, the DeFi venture liquidated its holdings in cbBTC, selling off 102.9 tokens for $10.4 million, before purchasing 103.15 WBTC the subsequent day. This strategic move, along with Sun’s recent appointment as WLFI advisor, underscores a pivotal relationship developing between WLFI and WBTC.
Sun further criticized Coinbase, citing serious concerns regarding its operations and lack of sufficient Proof of Reserves (PoR). He emphasized the importance of crypto security, underpinning his arguments with the familiar axiom, “Not your keys, not your coins!”
“Relying on Coinbase’s zero Proof of Reserves product means your BTC could be frozen or confiscated anytime. It’s entirely at the mercy of Paul Grewal [Coinbase CLO]. If he likes you, you’re safe. But if he doesn’t? Game over. That’s not how a secure blockchain infrastructure should operate—especially at the presidential level. So cbBTC was out,” Sun elucidated.
Sun’s advocacy for WBTC strengthens particularly in light of BitGo’s upgraded custody model, which boasts enhanced security through decentralization, a stark contrast to what he perceives as Coinbase’s vulnerabilities.
“cbBTC lacks Proof of Reserve, no audits, and can freeze anyone’s balance anytime. Essentially, it is just ‘trust me.’ Any US government subpoena could seize all your BTC,” Sun reiterated last September.
In the ongoing rivalry between WBTC and cbBTC, recent events have spurred intense competition. Coinbase’s recent decision to halt WBTC trading has further heightened tensions, with the exchange now facing a lawsuit alleging anti-competitive behavior regarding WBTC.
Conclusion
In summary, Justin Sun’s claims about WBTC as the “national Bitcoin reserve” highlight the growing prominence of Wrapped Bitcoin in the U.S. landscape, backed strongly by figures such as Donald Trump. As the competition between BitGo and Coinbase intensifies, the emphasis on security and transparency will likely play a critical role in shaping user preferences and overall market dynamics in the evolving world of cryptocurrency.
