An unidentified crypto whale has been steadily amassing large quantities of Wrapped Bitcoin (WBTC) amidst ongoing disputes surrounding the token’s ownership structure.
According to a post by blockchain analytics firm Lookonchain on August 19, the unknown wallet address has acquired more than 347 WBTC — valued at approximately $16 million based on current market prices — within the last 12 hours.
This recent acquisition brings the wallet’s total WBTC holdings to 1,953 WBTC, equivalent to $118 million, at an average purchase price of $58,853 per token over the past week.
The significant accumulation of WBTC comes at a time of increasing controversy regarding the token’s ownership. On August 9, BitGo, the company responsible for Wrapped Bitcoin, announced plans to transfer control of WBTC to a joint venture with Hong Kong-based investment manager BiT Global and Sun’s Tron ecosystem.
The following day, on August 10, crypto risk management firm Block Analitica (BA) submitted a proposal on MakerDAO’s governance forum, urging the protocol to halt new WBTC debts and prevent further borrowing against WBTC collateral.
On August 16, MakerDAO approved the proposal, effectively banning WBTC borrowing on the Sparklend platform.
In response to the developments, lending giant Aave is reportedly planning to introduce an alternative, proposing the use of Threshold Network’s TBTC as a substitute wrapped Bitcoin token.
Amid these controversies, U.S. crypto exchange Coinbase hinted at the potential launch of a new product called “cbBTC,” which many speculate could be the exchange’s own wrapped Bitcoin token.
Rena Shah, Chief Operating Officer of Bitcoin software firm Trust Machines, told that this new token could play a significant role in promoting bitcoin-native decentralized finance (DeFi). Shah said,
“The opportunity for cbBTC, based solely on current Coinbase users, is a massive onboarding opportunity for Bitcoin DeFi.”
