“Concerns” linked to Justin Sun’s involvement remain at large amongst DeFi players.The protocol, which operates a decentralized wrapped BTC version, tBTC, proposed a merger with BitGo to ensure the “safety” of WBTC. Part of the proposal
“Combining WBTC’s user base, integrations, liquidity, and brand recognition with tBTC’s decentralized custody and permissionless bridging mechanism can better achieve BitGo’s stated objective of multi-jurisdictional and multi-institutional custody.”For context, Justin Sun’s control in the WBTC custody operations, i.e., the BTC reserve that backs WBTC, has continued to raise “concerns.”
Despite BitGo’s CEO, Mike Belshe, announcing that Justin Sun’s involvement wouldn’t affect WBTC operations, some DeFi players, like Threshold, have remained cautious., cited Sun’s recent removal of 12K BTC from the Tron-based USDD stablecoin reserve as another cause of concern to decentralize WBTC before he gains control of WBTC custody.“The proposal aims to address these concerns and ensure the continued stability of WBTC in the crypto ecosystem.
The Threshold proposal involves BitGo moving WBTC to its decentralized network in exchange for 15% of its native token, T, which is worth about $36 million at current market prices.At the time of this writing, Mike Belshe and Justin Sun had not publicly made any statements regarding the proposal. So, it remains unclear whether they will endorse it or not.Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends.