Tron founder Justin Sun has once again stressed his demand for a Proof-of-Reserve from Coinbase amid the launch of its new product aka cbBTC in the market. He further questioned that when all exchanges in the industry have implemented Proof-of-Reserve (PoR) why is the exchange saying that it’s not feasible?
Tron Founder Justin Sun Slams Coinbase on PoR Approach
Justin Sun stated that there’s been a growing adoption of the Proof of Reserves (PoR) in the crypto industry with big market players like binance adopting this strategy. He expressed confusion as to why is the exchage saying that it is not feasible. Sun’s comments came soon after Coinbase denied rumors of issuing Bitcoin IOUs to BlackRock.
Senior Bloomberg ETF analyst Eric Balchunas said that BlackRock’s involvement with the cbBTC project itself adds credibility. He added that the largest asset manager won’t tolerate any mismanagement when it comes to maintaining Bitcoin reserves.
Emphasizing this matter, Justin Sun stated that the crypto community isn’t demanding perfection but expects transparency. He also added that revealing all wallet addresses is a relatively simple task.
The Tron founder further added that as seen in the FTX case, relying on audit firms for security doesn’t guarantee that funds will stay on-chain. He also added that being a public company doesn’t safeguard against bankruptcy, citing the downfall of the Signature Bank. Thus, Sun believes that implementing PoR by Coinbase would be a step toward self-regulation, improving trust within the industry.
When all exchanges in the industry have already implemented PoR, we are puzzled that Coinbase claims PoR is not feasible. You can see Binance’s full PoR here: https://t.co/5hkfZPhhs8. The community isn’t expecting Coinbase to provide a perfect solution all at once, but simply… https://t.co/xQHf8ZxVNR
— H.E. Justin Sun(hiring) (@justinsuntron) September 18, 2024
Will BlackRock Continue to Borrow Bitcoin Without Collateral?
Over the last weekend, popular crypto analyst Tyler Durden raised questions about Coinbase allowing BlackRock to borrow Bitcoin without collateral. He also raised doubts about market manipulation allowing BlackRock to profit from the resulting price fluctuations.
Although the exchange hasn’t responded much to these allegations, the crypto community expects it to come out clean on the matter of Bitcoin reserves.
On the other hand, the Bitcoin price has been showing strength gaining past $60,500 levels ahead of the FOMC meeting on Wednesday. The Fed rate cut would be crucial to determining the next BTc price trajectory from here onwards.
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