World Liberty Financial, a company backed by the Trump family, has exchanged $10 million worth of cbBTC for WBTC after appointing Justin Sun as an adviser. This move highlights their commitment to exploring alternative options in the crypto market and adapting to the ever-changing landscape of cryptocurrencies.
Trump-Backed World Liberty Financial Swaps Its cbBTC for WBTC After Sun Joins as Adviser
World Liberty Financial, a company backed by the family of U.S. President-elect Donald Trump, has exchanged approximately $10 million worth of Coinbase‘s wrapped bitcoin, cbBTC, for rival WBTC.
Wrapped bitcoin is a form of the world’s largest cryptocurrency that can be used in decentralized finance (DeFi) on blockchains other than Bitcoin. This move comes after a court ruled against BiT Global, a custodian involved in WBTC, on Wednesday. The decision was made despite Coinbase citing BiT Global’s links to Justin Sun, the founder of the Tron blockchain, as an “unacceptable risk.”
Justin Sun has been accused of fraud and market manipulation in the U.S., but he denies these allegations. Interestingly, Sun has become an adviser to World Liberty Financial after acquiring a $30 million stake in the platform last month in exchange for WLFI tokens.
While Sun’s involvement with WBTC is minimal, his influence on the project cannot be ignored. In August, BitGo announced that it would distribute control over the project’s custody to three entities globally (including BiT Global) instead of just one, aiming to decentralize the operation. However, some board members believe that Sun’s involvement is actually beneficial for WBTC, given the success of Tron and other businesses.
“The Tron blockchain has more than 50% of global market share,” said Robert Liu, a board member of BiT Global. “They have the highest turnover rate. So people have no issue putting more than $60 billion of stablecoin assets circulating on the Tron blockchain.” This statement highlights the potential benefits of Sun’s involvement with WBTC.
The Role of Justin Sun in World Liberty Financial
Justin Sun, a well-known figure in the crypto industry, has been involved in various controversies. However, his role as an adviser to World Liberty Financial is not directly related to his involvement with WBTC. Instead, it appears that he has become a strategic partner for the company.
Sun’s influence on the project cannot be overstated, given his success with Tron and other businesses. His ability to bring in significant investments and partnerships could potentially benefit World Liberty Financial in the long run.
The Significance of the Swap
The swap from cbBTC to WBTC is a significant move for World Liberty Financial. As a company backed by the Trump family, this decision highlights their commitment to exploring alternative options in the crypto market. The involvement of Justin Sun as an adviser adds another layer of complexity to the situation.
While the court’s ruling against BiT Global may have contributed to the decision, it is clear that World Liberty Financial is seeking to expand its presence in the DeFi market. The swap from cbBTC to WBTC demonstrates their willingness to adapt and navigate the ever-changing landscape of cryptocurrencies.
The Future of WBTC
The future of WBTC remains uncertain, given the court’s ruling against BiT Global. However, with Justin Sun’s involvement as an adviser, it is possible that the project will continue to thrive. The success of Tron and other businesses under his leadership could potentially benefit WBTC in the long run.
As the crypto market continues to evolve, it will be interesting to see how World Liberty Financial navigates its new partnership with WBTC. With Justin Sun’s influence on the project, it is clear that this decision will have far-reaching consequences for the company and the industry as a whole.
