The recent crash in FTX trading has caused a stir in the crypto markets. The difference in price between the two has been the focus of traders. Bitcoin is the most valuable cryptocurrency, and its subsidiary is the Wrapped Bitcoin (wBTC). It is backed 1-to-1 by the token which is managed by BitGo, an established trust firm. The token is usually traded as the first token, but it has been trading at a discount for the past few days.
Source: Flipboard
Mike Belshe, BitGo CEO, was interviewed by Bloomberg News on Tuesday to discuss the implications of wBTC, the current state of the crypto markets, and more. The following is an edited version of the discussion:
Q: What’s the story with Bitcoin Wrapped?
A: It’s not surprising that there has been so much activity about this. wBTC is a token on Ethereum which is 1-to-1 backed by Bitcoin and held in custody by BitGo. You can view the details on wBTC.network. With wBTC, since it is a smart token on Ethereum, it is numerically secured on-chain. Also, each token can be tracked using a computerized token. You can see how many tokens are in the Ethereum network and exactly how many Bitcoins are held in custody at wBTC.network.
Q: How confusing is it to deal with chunks of speculation? What can be done about it?
A: One of the problems we have had in the asset class is speculation. There are some complex topics and people don’t always understand the assets they are speculating on. Wrapped Bitcoin makes cryptography particularly useful. This leaves a large portion of retail investors vulnerable to misinformation. We have seen a lot of speculation, and I think we can be held accountable for our actions.
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