Justin Sun Praises World Liberty Financial’s Choice of wBTC Over cbBTC – CryptoMode
Tron blockchain founder Justin Sun has criticized Coinbase’s custodial model, condemning the exchange’s centralized approach to its tokenized Bitcoin (BTC) product, cbBTC.
Sun claimed that the exchange’s proof of reserves system is inadequate, praising Trump-associated 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 it is risky to depend on the exchange’s custodial services, adding that Coinbase could freeze or confiscate any BTC reserves under cbBTC based on its discretion.
Suspicions Over Coinbase’s Custodial Solutions
Sun emphasized the importance of decentralized ownership in his post on X, stating “Not your keys, not your coins.” The WLF’s decision shows its preference for a completely decentralized solution amid controversy over Coinbase’s centralized approach to its custodial solution offerings.
Last year, the crypto community expressed its displeasure towards BitGo after it announced that Justin Sun would play a role in its collaboration with BiT Global (a subsidiary of Bithumb) to manage its wBTC product. Many predict that he will develop a conflict of interest with his new partners over the long term.
At the time of writing, the exchange has not responded publicly to Sun’s claims. Data from the crypto intelligence platform, Arkham Intelligence, showed that a wallet linked to WLF holds $181 million in Ether (ETH) and roughly $ 56.4 million in wBTC. Meanwhile, there is no public proof that it holds any cbBTC.
Read more: John McAfee AI Token Sparks Controversy in Crypto Community
TRON Stablecoin Fee Could Be Zero Soon – Justin Sun
The Tron founder also tweeted that the blockchain platform’s team is working on reducing fees significantly, and possibly making stablecoin transactions on the blockchain zero-fee. In a separate post, Justin Sun tweeted “TRX is the way”, quoting a CoinGecko tweet that revealed that the Ethereum blockchain generated the highest transaction fees in 2024.
The CoinGecko report showed that Ethereum generated $2.48 billion in transaction fees while TRON was second with $2.15 billion. Bitcoin generated the third largest transaction fees with $922.89 million.
