NewsletterDonald Trump World Liberty Financial Drops cbBTC For wBTC Amid Delisting Saga
Highlights
- WLFI swapped 102.9 cbBTC worth $10.4M for 103.15 WBTC.
- Justin Sun invested $30M in WLFI, becoming its largest investor and a key advisor to the Trump-backed DeFi project.
- Coinbase delisted WBTC, citing standards issues, while cbBTC's market cap soared to $1B in growing adoption.
World Liberty Financial (WLFI), a Donald Trump decentralized finance project, has restructured its wrapped Bitcoin holdings. WLFI exchanged $10.4 million in Coinbase-backed cbBTC for 103.15 WBTC. The move follows Coinbase’s decision to delist WBTC, sparking controversy and legal battles among stakeholders.
Donald Trump World Liberty Financial Sides with WBTC After Coinbase Controversy
According to Lookonchain, Donald Trump World Liberty Financial exchanged 102.9 cbBTC, valued at $10.4 million, for 103.15 WBTC. The transaction occurred hours after Coinbase announced the delisting of WBTC due to alleged failure to meet the exchange’s standards.
The decision to switch to WBTC aligns World Liberty Financial with Justin Sun, founder of TRON DAO and a vocal critic of cbBTC. Sun has raised concerns over cbBTC’s governance and transparency. As part of this alignment, Donald Trump’s project has distanced itself from Coinbase’s wrapped Bitcoin solution, favoring WBTC infrastructure.
Coinbase’s decision to delist WBTC has stirred legal battles, with stakeholders questioning the exchange’s move. Consequently, TRON DAO founder Justin Sun questioned Coinbase CLO Paul Grewal on the delisting of wBTC and the fairness of their token listing standards. Sun’s BiT Global, which recently acquired custodial rights for wBTC, filed a lawsuit against Coinbase, alleging anti-competitive practices.
BiT Global suit claims Coinbase delisted wBTC to favor its own tokenized Bitcoin product, cBTC. Despite these claims, cbBTC’s market cap has surged to $1 billion, signaling widespread adoption of Coinbase’s wrapped Bitcoin product.
Meanwhile, Donald Trump’s World Liberty Financial appears to have opted for stability by choosing WBTC, a token with a $13.6 billion market cap. Analysts attribute this choice to WBTC’s longer market presence and infrastructure advantages compared to cbBTC.
Justin Sun’s Role In Trump’s DeFi Strategy
Recently, Justin Sun invested $30 million in World Liberty Financial, becoming its largest investor and advisor. His involvement has played a crucial role in WLFI’s decision-making process, including the choice to transition from cbBTC to WBTC.
Sun’s criticism of cbBTC includes its lack of proof-of-reserve mechanisms and centralized control. His association with BitGo, the custodian of WBTC, further solidifies WLFI’s preference for the alternative wrapped Bitcoin asset. This strategic shift underscores Trump’s DeFi project’s alignment with Sun’s blockchain vision.
Removal of Debt Ceiling In Congress
In another development, Donald Trump has called for the complete abolition of the U.S. debt ceiling. Speaking in a phone interview with NBC, he described the debt ceiling as a “meaningless concept” and urged Congress to eliminate it entirely.
The President-elect added,
“The Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge. It doesn’t mean anything, except psychologically.”
This proposal comes as Donald Trump prepares to assume office, where his administration is expected to introduce measures to boost blockchain innovation and digital asset adoption. Notably, these legislative priorities could shape the regulatory landscape for projects like World Liberty Financial.
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