tl;dr
BiT Global has filed a lawsuit against Coinbase, accusing the exchange of unfair and predatory behavior for planning to delist the largest Wrapped Bitcoin token (WBTC). The lawsuit alleges that Coinbase aims to push its own version of the token and create a monopoly in the industry. BiT Global claim...
BiT Global sues Coinbase for unfair delisting of WBTC, alleging predatory and monopolistic motives
BiT Global has filed a lawsuit against Coinbase, accusing the exchange of unfair and predatory behavior for planning to delist the largest Wrapped Bitcoin token (WBTC). The lawsuit alleges that Coinbase aims to push its own version of the token and create a monopoly in the industry.
Coinbase faces lawsuit over delisting of WBTC in favor of its own cbBTC, accused of unfair competition
BiT Global claims that the delisting caused a 5% drop in WBTC circulation and accuses Coinbase of unfair and deceptive tactics. The lawsuit also points out Coinbase's listings of meme coins and tokens with no inherent value. Additionally, it highlights controversy surrounding BiT Global's partnership with Justin Sun and concerns about potential risks.
Allegations of unfair business practices and market manipulation in Coinbase's delisting of WBTC
BiT Global has sued Coinbase for announcing plans to delist the largest Wrapped Bitcoin token—or WBTC —alleging that the San Francisco-based exchange did so in a "predatory and unfair" move that "violates both federal and state law." The lawsuit further alleged that Coinbase’s listings of meme coins and tokens—such as Dogwifhat (WIF), Pepe (PEPE) and Mog Coin (MOG)—with “no inherent value” proves that the exchange delisted WBTC in a bid to have a monopoly over the industry.
Industry concerns over Justin Sun's involvement with BiT Global and the controversy surrounding WBTC
WBTC is the 18th biggest cryptocurrency, with a market cap of $13.7 billion, according to CoinGecko. BiT Global helps custody the tokens, which are backed 1:1 with Bitcoin but run on Ethereum . Traders use WBTC so they can use their Bitcoin holdings across other crypto platforms and applications that aren’t natively compatible with Bitcoin. Back in August—ahead of cbBTC’s launch—industry experts told Decrypt that the token had potential to dominate the crypto market. WBTC attracted controversy in the crypto world when BitGo—which also custodies WBTC—announced its partnership with BiT Global to help custody the token. Some in the decentralized finance industry pointed out that Justin Sun’s involvement with BiT Global presented “an unacceptable level of risk.” Sun is the crypto mogul behind the Tron network. MakerDAO, which issues the DAI stablecoin, highlighted that the TUSD—another stablecoin—became less transparent under Sun’s involvement.
Coinbase defends delisting decision, emphasizing commitment to high listing standards
Coinbase stated that it maintains high listing standards and regularly evaluates listed assets. BiT Global did not immediately answer Decrypt’s emailed questions.