Rumors are circulating that Coinbase issues Bitcoin IOUs. “paper Bitcoin”BlackRock, who was ultimately manipulating the crypto price lower. Coinbase’s CEO Brian Armstrong as well as industry experts put an end to these rumors quickly on Monday. An X user had brought up the rumors over the weekend.
Tyler Durden, a crypto analyst at X, accused Coinbase that it allowed BlackRock to loan Bitcoin without collateral. BlackRock could then manipulate the price of the asset by manipulating the market.
Durden made his allegations following a Tron co-founder Justin Sun’s post on X. Sun called Coinbase’s new wrapped Bitcoin product (cbBTC), “trust me.” Technically, the product was not audited or proof of reserves. It could therefore freeze any balances. “Any U.S. government subpoena could seize all your BTC,” Sun said. “There’s no better representation of central bank Bitcoin than this. It’s a dark day for BTC.”
Also Read: Circle Expands Access to USDC in Brazil and Mexico
Brian Armstrong, Coinbase’s CEO, Debunks Rumors of Paper Bitcoin
Brian Armstrong quickly offered explanations to dispel the Sun and Durden claims on Monday. Armstrong clarified that ETFs were minted, burned and settled in-chain on one day. He said institutional clients are able to utilize trade financing or over-the-counter trading options until the full settlement of the trades.
Durden’s weekend tweet may have been deleted because of the explanation or not.
Armstrong was also defended by two ETF experts at Bloomberg, Eric Balchunas & James Seyffart. The experts also said that Bitcoin’s recent price wasn’t affected. “Paper Bitcoin” BlackRock, Coinbase. Balchunas has criticized bitcoiners for accusing ETFs of recent pressure on the Bitcoin market. “instead of looking in the mirror.” “[People] who invest in BTC are generally skeptical of [the government] and institutions (which I get),” Balchunas posted a message on X. He added that BlackRock “isn’t playing around” The $9 trillion asset manager will be able to provide you with the information that you need. “flip out” Coinbase has been around since “screwing around with their bitcoin.”
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: watcher.guru
