Justin Sun, founder of Tron Blockchain, criticized Coinbase’s custodial model and condemned the exchange’s centralized approach to its tokenized Bitcoin (BTC) product, cbBTC.
sun He claimed The evidence of the exchange’s reserves system is insufficient, praising Trump-linked World Liberty Financial (WLF) for choosing wrapped BTC provided by BitGo and not Coinbase’s cbBTC for its BTC reserves. The Tron founder explained that relying on exchange custodial services is risky, adding that Coinbase can freeze or confiscate any Bitcoin reserves under CBBTC at its discretion.
Doubts about Coinbase’s custody solutions
Sun emphasized the importance of decentralized ownership in his post on X, saying “not your keys, not your coins.” WLF’s decision shows its preference for a fully decentralized solution amid controversy over the centralized approach taken by Coinbase in its custodial solution offerings.
Last year, the cryptocurrency community expressed its displeasure towards BitGo after it was announced that Justin Sun would play a role in its collaboration with BiT Global (a subsidiary of Bithumb) to manage its wBTC product. Many expect that he will develop a conflict of interest with his new partners in the long term.
At the time of writing, the exchange had not publicly responded to Sun’s claims. Data from cryptocurrency intelligence platform Arkham Intelligence showed that the wallet linked to WLF contained $181 million in Ethereum (ETH) and about $56.4 million in WBTC. Meanwhile, there is no public evidence that it owns any CBTC currency.
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TRON stablecoin fees may soon become zero – Justin Sun
Founder of Tron too chirp The blockchain platform team is working to significantly reduce fees, and possibly conduct fee-free stablecoin transactions on the blockchain. In a separate post, Justin Sun chirp “TRX is the way,” a CoinGecko tweet said, revealing that the Ethereum blockchain generated the highest transaction fees in 2024.
CoinGekko reports Show Ethereum generated $2.48 billion in transaction fees while TRON came in second with $2.15 billion. Bitcoin generated the third largest transaction fees at $922.89 million.