Tron founder Justin Sun has once again urged crypto exchange Coinbase to set up a Proof-of-Reserve (PoR) system after it launched its new product, cbBTC. He also questioned why Coinbase is reluctant to implement PoR, unlike other exchanges.
Justin Sun pointed out that more crypto companies, including Binance, are using the PoR system. He was puzzled by Coinbase saying that PoR is not practical. Sun’s remarks came after Coinbase dismissed rumors about giving Bitcoin IOUs to BlackRock.
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Senior Bloomberg ETF analyst Eric Balchunas said that BlackRock’s involvement in the cbBTC project boosts its credibility. He noted that as the largest asset manager, BlackRock won’t allow any mishandling of Bitcoin reserves. Justin Sun highlighted that the crypto community isn’t asking for perfection, just transparency. He also mentioned that showing all wallet addresses is a straightforward task.
The Tron founder also mentioned that, as shown by the FTX case, depending on audit firms for security doesn’t ensure that funds remain on-chain. He pointed out that being a public company doesn’t protect against bankruptcy, using Signature Bank’s collapse as an example. Sun believes that if Coinbase adopts PoR, it would help with self-regulation and build trust in the industry.
Bitcoin Surges Past $60,500 Ahead of Key FOMC Meeting
Over the weekend, well-known crypto analyst Tyler Durden questioned why Coinbase is allowing BlackRock to borrow Bitcoin without collateral. He also expressed concerns about potential market manipulation that could let BlackRock benefit from price changes. While Coinbase has not addressed these allegations in detail, the crypto community is hoping for transparency regarding Bitcoin reserves.
Meanwhile, Bitcoin has been performing well, recently surpassing $60,500 as it approaches the FOMC meeting on Wednesday. The Fed’s decision on interest rates will be key in shaping Bitcoin’s future price movements.
