Brian Armstrong Shuts Down Coinbase (Paper Bitcoin) Rumors
Rumors have been circulating that Coinbase is issuing Bitcoin IOUs (or “paper Bitcoin”) to BlackRock, which ultimately was manipulating the price of crypto lower. Coinbase CEO Brian Armstrong, as well as other industry experts, quickly put the rumors to bed on Monday, after an X user brought the rumors to light over the weekend. X crypto analyst Tyler Durden accused Coinbase of allowing BlackRock to borrow Bitcoin without providing collateral. This in turn would cause price swings in the asset, allowing BlackRock to manipulate the market and swing prices. Durden’s allegations came following a post from Tron founder Justin Sun on X. Sun described Coinbase’s new wrapped bitcoin product (cbBTC) as “trust me.” The product lacked Proof of Reserves or audits, technically meaning that the product could freeze balances at any time. “Any U.S. government subpoena could seize all your BTC,” Sun said. “There’s no better representation of central bank Bitcoin than this. It’s ...