American crypto trading platform Coinbase Global Inc. has announced it has disabled trading for Wrapped Bitcoin (wBTC). The top crypto exchange noted that despite this move, the product will still become accessible to users. The essence of this accessibility is that token holders can withdraw their funds at any time.
Coinbase To End the wBTC Era
As part of the announcement, Coinbase said it regularly monitors the assets on its exchange to ensure they meet its listing standards. The Brian Armstrong-led firm said it chose to delist wBTC based on its most recent review. The wBTC trading removal became effective from 12 pm ET.
The exchange said it suspended the wrapped Bitcoin token on its main platform Coinbase.com including the simple and advanced trading interfaces. It revealed that it took down trading support for the token on Coinbase Exchange and Coinbase Prime as well.
We have moved our wBTC order books to limit-only mode. Limit orders can be placed and canceled, and matches may occur.
If you have any questions regarding this update, please visit: https://t.co/aZsdyDqkAS
— Coinbase Assets (@CoinbaseAssets) November 19, 2024
As part of the measures toward the removals, the exchange noted that it has moved the token’s order books to limit-only mode. Coinbase reiterated that limited orders may be placed and canceled and matches may also occur. Unlike its standard delisting with defined withdrawal periods, the exchange said users will have access to their funds at any time.
A Controversial Business Deal
The wrapped Bitcoin token came into the spotlight last this week after a Justin Sun-linked firm responsible for its issuance BiT Global sued the exchange. BiT Global alleged that the exchange delisted the token to give competitive advantage to cbBTC.
In its response, Coinbase said its delisting stems from concerns over alleged market manipulation practices of Justin Sun. Despite what many considered “guilt by association,” the court sided with exchange, highlighting that it has a right to delist wBTC. The trading platform announced this delisting barely 24-hours after the favorable ruling.
Meanwhile, members of the crypto community have faulted Coinbase despite its victory in the case. Critics faulted the trading platform over its listing of memecoins over crypto projects with real utility. Many also considered its alleged listing standards to be vague, a series of allegations it has not directly addressed.
As a form of protest, Donald Trump-backed World Liberty Financial dropped cbBTC in favor of wBTC
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