{"id":93694,"date":"2024-09-18T03:06:35","date_gmt":"2024-09-18T07:06:35","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=93694"},"modified":"2024-09-18T03:06:44","modified_gmt":"2024-09-18T07:06:44","slug":"justin-sun-calls-coinbase-to-provide-reserve","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/justin-sun-calls-coinbase-to-provide-reserve\/","title":{"rendered":"Justin Sun Calls for Coinbase to Provide Proof-of-Reserve Amid Controversy"},"content":{"rendered":"\n

Tron founder Justin Sun criticized Coinbase for not implementing Proof-of-Reserve (PoR)\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> amid the launch of its new product, cbBTC, questioning why the exchange deems PoR unfeasible.<\/p>\n\n\n\n
\"Justin

Justin Sun Calls for Coinbase to Provide Proof-of-Reserve Amid Controversy<\/figcaption><\/figure>\n\n\n\n

Justin Sun, the founder of Tron, has emphasized once more how important he believes Coinbase should provide a Proof-of-Reserve in light of the company's recent introduction of cbBTC. He asked further, “Why is the exchange claiming that Proof-of-Reserve (PoR) is not feasible, when all other exchanges in the industry have implemented it?”<\/p>\n\n\n\n

Tron Founder Justin Sun Disapproves of Coinbase's PoR Strategy<\/h2>\n\n\n\n

According to Justin Sun, major market participants like Binance are implementing the Proof of Reserves (PoR) approach, which is becoming more and more popular in the cryptocurrency space<\/a>.<\/p>\n\n\n\n

He was perplexed as to why the exchange was stating that it was not possible. Sun made these remarks shortly after Coinbase refuted reports that it had sent Bitcoin IOUs to BlackRock.<\/p>\n\n\n\n

Credibility is increased, according to senior Bloomberg ETF analyst Eric Balchunas, by BlackRock's participation in the cbBTC project. The biggest asset manager, he continued, will not put up with any mishandling of Bitcoin reserves.<\/p>\n\n\n\n

Justin Sun emphasized that the crypto community<\/a> is looking for transparency rather than perfection. He also mentioned how easy it is to disclose every wallet address.<\/p>\n\n\n\n

The founder of Tron continued by saying that depending on audit firms for security does not ensure that money would remain on-chain, as demonstrated by the FTX example.<\/p>\n\n\n\n

He further stated\u2014citing the failure of the Signature Bank\u2014that being a publicly traded corporation does not provide protection from bankruptcy. Therefore, Sun thinks that Coinbase putting PoR into effect would be a step toward self-regulation, enhancing industry trust.<\/p>\n\n\n\n

\n

Coinbase CEO just admitted that you got to trust them on their word.

They will not provide any proof of reserves for the BTC they *claim* they have, nor any proof of backing for their new paper BTC called cbBTC.

If they print too much paper BTC they will go the FTX route. pic.twitter.com\/quYklYgNxN<\/use><\/svg><\/span><\/a><\/p>— Duo Nine \u26a1 YCC (@DU09BTC) September 15, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

Will BlackRock Keep Borrowing Bitcoin Without Security Deposits?<\/h2>\n\n\n\n

Tyler Durden, a well-known cryptocurrency analyst, questioned Coinbase's decision to let BlackRock borrow Bitcoin without collateral over the weekend. He also questioned whether BlackRock was able to profit from the ensuing price swings due to market manipulation.<\/p>\n\n\n\n

While the exchange has not yet provided a response to these accusations, the cryptocurrency community anticipates that it will clarify its position about Bitcoin reserves<\/use><\/svg><\/span><\/a>.<\/p>\n\n\n\n

On the other hand, in advance of the FOMC meeting on Wednesday, the price of Bitcoin has been shown strength, rising beyond $60,500 levels. The next course of the Bitcoin price would be determined by the Fed rate cut, which would be significant.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tron founder Justin Sun criticized Coinbase for not implementing Proof-of-Reserve (PoR) amid the launch of its new product, cbBTC, questioning why the exchange deems PoR unfeasible. Justin Sun, the founder of Tron, has emphasized once more how important he believes Coinbase should provide a Proof-of-Reserve in light of the company’s recent introduction of cbBTC. He […]<\/p>\n","protected":false},"author":36,"featured_media":93700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-93694","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/09\/e92d2514806d42e298af54dc47db1607.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/93694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=93694"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/93694\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/93700"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=93694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=93694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=93694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}