LockMeta
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Metaverse
  • Business
  • Markets
  • Policy
  • Press Release
Twitter Telegram
LockMeta
Twitter Telegram
Google News
  • Latest News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Metaverse
  • Business
  • Markets
  • Policy
  • Press Release
LockMeta
Bitcoin News

Analysis: Alameda is the largest minter of WBTC, but not enough to pose a systemic risk

November 26, 2022
Share Facebook Twitter Telegram WhatsApp Pinterest LinkedIn Tumblr Email Reddit VKontakte

The recent de-anchoring of WBTC/BTC has aroused doubts from members of the encryption community. Twitter user Castaneda pointed out that according to the mechanics of the WBTC ecosystem, when a merchant wishes to create new WBTC, it must first provide real BTC to the custodian, who then mints the new WBTC and provides it to the merchant. When merchants wish to recover BTC, they must destroy the same amount of WBTC, thus ensuring that their WBTC amount does not exceed BTC.

Alameda has acted as a merchant at Wayback Machine Checkpoint since at least September 28, 2020, but Alameda can only mint WBTC, not custody BTC. Now Alameda is no longer listed as a merchant, and the Alameda custodian wallet cannot be found on the audit page.

Castaneda said that by checking the wallet of its previous custodian, it was found that the wallet was emptied, and the last 5,000 BTC were withdrawn on November 11, shortly after the FTX crash.

Castaneda emphasized, “However, we don’t think this poses any systemic risk because what is really important is that the custodians still maintain the necessary reserves to ensure a 1:1 ratio between WBTC/BTC. While people can still use 1 WBTC is exchanged for 1 BTC, but it is possible to arbitrage when there is a discount. According to our assessment, WBTC still looks stable, and price fluctuations seem to be caused more by market panic than insolvency.”

Previous ArticleDogecoin DOGE rose nearly 15% in the past 24 hours
Next Article Luxury giant PRADA will release the new Timecapsule NFT series on December 1

Related News

February 4, 2023

Bitcoin Price Could Hit $45,000 Before Christmas

February 2, 2023

In January, Bitcoin and Ethereum options and futures trading indicators generally rose, and BTC option positions increased by 116.5%

February 2, 2023

More than 70% of Wall Street traders plan not to touch cryptocurrencies this year

February 1, 2023

Data: The proportion of Bitcoin UTXO over 5 years increased by 17% in the past six months

January 31, 2023

Bitcoin miners’ income increased by 50% in January

January 30, 2023

Bitcoin Buyers of 2019 Are All Back in Profit

January 30, 2023

Data: In January 2023, the revenue of Bitcoin miners increased by 50% month-on-month to $23 million

January 13, 2023

Grayscale: The SEC’s reasons for opposing the listing of Bitcoin spot ETFs are illogical

The Latest
Ethereum News February 5, 2023
The Ethereum expansion project Scroll improved the v2 bridge and ZK architecture this week
Altcoin News February 5, 2023
SHIB rises 13% on Saturday, hits 4-month high
Altcoin News February 5, 2023
The Arbitrum ecological stable currency project SperaxUSD was attacked yesterday
Business News February 5, 2023
Yuga Labs has removed wallet “0x3977″‘s DooKey Dash game high score, Mongraal is back on top
Ethereum News February 5, 2023
Bitcoin and Ethereum Whales Move $743 Million in Crypto in Three Massive Transfers

LockMeta provides the latest crypto news flash including Bitcoin, Ethereum, Altcoins, NFTs, Metaverse, Business and Policy. Get today's latest crypto news in a minute.

Twitter Telegram
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Metaverse
  • Business
  • Markets
  • Policy
  • Press Release
  • About Us
  • Contact Us
  • Advertise
  • Terms of Service
  • Privacy Policy
© 2023 LockMeta.

Type above and press Enter to search. Press Esc to cancel.