BiT International has filed a lawsuit towards Coinbase, the biggest crypto buying and selling platform in the US, in keeping with a Dec. 13 court docket submitting.
The Justin Solar-linked crypto custodian alleged that the US change unfairly eliminated wrapped Bitcoin (WBTC) from its platform to favor its in-house product, Coinbase Wrapped Bitcoin (cbBTC).
Antitrust violations
In line with the court docket submitting, Coinbase is leveraging its dominance within the crypto market to suppress competitors. BiT International accused the change of violating antitrust legal guidelines by changing WBTC with cbBTC to determine management over the wrapped Bitcoin market.
The criticism famous that Coinbase’s actions are usually not solely anti-competitive however strategically aimed toward rising its transaction revenues as a result of transaction charges on its platform are anticipated to rise as cbBTC beneficial properties traction.
The submitting furthered:
“On info and perception, Coinbase used this language—that it could not cost wrapping/unwrapping charges ‘right now’—as a result of it plans to take action as soon as it has unfairly eradicated the competitors.”
BiT International disputed Coinbase’s declare that WBTC was eliminated on account of “itemizing requirements,” citing the change’s current inclusion of meme cash like PEPE and MOG as proof.
In line with the submitting, these actions reveal that the delisting was not about high quality however somewhat an try and seize WBTC’s market place. It added:
“The choice to permit customers to commerce these memecoins makes clear that Coinbase didn’t delist WBTC due to any itemizing customary, however as a result of Coinbase coveted WBTC’s market share and wished it for itself.”
Via this lawsuit, BiT International seeks to revive competitors and forestall additional centralization of energy. The agency goals to halt the delisting of WBTC and shield decentralized innovation within the crypto house.
The wrapped Bitcoin market
Coinbase’s determination to delist wBTC comes after a turbulent 12 months for the asset. BiT International grew to become a key custodian for WBTC this 12 months, following BitGo’s transfer to distribute custody management to a number of entities, together with the Hong Kong-based agency.
This shift sparked considerations inside the DeFi neighborhood on account of Justin Solar’s connection to the crypto custodian, prompting MakerDAO and Aave to rethink WBTC as a collateral asset.
Whereas these DeFi protocols in the end retained WBTC, the developments raised questions on its long-term stability. In response to those challenges, a number of companies, together with Coinbase, launched their very own wrapped Bitcoin merchandise.
Nevertheless, Coinbase’s cbBTC has shortly gained momentum to turn into the second-largest wrapped Bitcoin product behind WBTC. The token was deployed on Ethereum and its Layer 2 community Base in September and at the moment has a market capitalization of round $2 billion.
Alternatively, WBTC, regardless of being among the many high 20 cryptocurrencies with a $13.7 billion market cap, has seen its token provide shrink by over 20,000 BTC on account of ongoing challenges.
