WBTC on Tron Drops Proof-of-Reserves After Justin Sun Partnership Deal

Keep Your Bitcoin Private: The Ultimate Guide to Converting BTC to WBTC on Tron Network

  • WBTC on tron removed from official dashboard despite August 2023 partnership announcement.
  • Real-time proof-of-reserves for WBTC on Tron no longer publicly accessible.
  • Dashboard continues to display WBTC versions on Ethereum, Base, Kava, and Osmosis.
  • Sun-owned Poloniex’s BTC on Tron product operates without disclosed backing.
  • BitGo and associated parties remain silent on removal of transparency features.

WBTC Removes Transparency Features for Tron-Based Tokens Following Justin Sun Partnership

BitGo’s Wrapped Bitcoin (WBTC) has quietly removed proof-of-reserve tracking for its Tron-based tokens, contradicting earlier promises of transparency following its August 2023 partnership with Justin Sun and the Tron ecosystem.

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Transparency Concerns Surface

The WBTC dashboard no longer displays information for WBTC or WETH tokens on the Tron network, while maintaining visibility for other blockchain networks including Ethereum, Base, Kava, and Osmosis. This change comes despite BitGo’s earlier commitment to maintaining “real-time proof-of-reserves” through the partnership.

An analysis of on-chain data shows the supply of WBTC on Tron remains stable, but investors can no longer verify the Bitcoin collateral meant to back these tokens.

Market Impact and Related Developments

The removal of transparency features aligns WBTC on Tron with Sun’s other ventures:

  • Poloniex’s BTC on Tron product operates without transparent backing
  • The Poloniex product exceeds WBTC on Tron’s size by approximately 1,000 times
  • HTX, advised by Sun, recently redeemed thousands of previously undisclosed WBTC

The situation raises questions about WBTC’s continued marketing claims of being “Completely transparent. 100% verifiable.” BitGo, BiT Global, WBTC, and Justin Sun have not responded to requests for comment regarding the removal of these transparency features.

For retail investors, this development highlights the importance of verifying the backing of wrapped tokens, which are designed to represent Bitcoin on other blockchain networks through a 1:1 backing ratio.

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