Whale accumulates $118M in Wrapped Bitcoin (WBTC) amid controversy

• The whale acquired 347 Wrapped Bitcoin (WBTC) within just 12 hours on August 19.
• BitGo plans to transfer control of WBTC to a joint venture involving itself, BiT Global, and the Tron ecosystem.
• Coinbase has hinted at launching its own wrapped Bitcoin token, dubbed “cbBTC.”

An unidentified whale has been rapidly accumulating Wrapped Bitcoin (WBTC), amassing over $118 million worth of WBTC in a short span of time.

According to blockchain analytics firm Lookonchain, the unknown wallet has gathered a total of 1,953 WBTC, purchased at an average price of $58,853 per token.

The most recent transaction was particularly notable, with the whale acquiring 347 WBTC — valued at approximately $16 million — within just 12 hours on August 19.

A whale accumulated 347 $WBTC($16M) again 7 hours ago!

Over the past week, this whale has accumulated a total of 1,953 $WBTC($118M) from #Binance at an average price of $58,853.https://t.co/XlRBgyL4Tt pic.twitter.com/g1KRtkK5eY

— Lookonchain (@lookonchain) August 20, 2024

This sudden and significant accumulation has raised eyebrows, especially as it coincides with ongoing debates and controversies surrounding the ownership and management of WBTC.

BitGo’s plans to transfer control of Wrapped Bitcoin (WBTC)

The controversy began earlier this month when BitGo, the firm responsible for issuing Wrapped Bitcoin (WBTC), announced plans to transfer control of the token to a joint venture involving itself, Hong Kong-based investment manager BiT Global, and Sun’s Tron ecosystem. This decision has led to heightened scrutiny and concern among major DeFi players.

In response, MakerDAO, a leading decentralized finance protocol, moved quickly to mitigate potential risks associated with WBTC. On August 16, the platform approved a proposal that prohibits borrowing against WBTC collateral on its Sparklend platform.

Similarly, Aave, another major DeFi protocol, is reportedly considering the adoption of an alternative wrapped Bitcoin token, TBTC, offered by Threshold Network.

Amid these developments, speculation is rife about the potential entry of Coinbase into the wrapped Bitcoin market. The US-based crypto exchange has hinted at launching its own wrapped Bitcoin token, dubbed “cbBTC,” which could further shake up the market.

The mystery whale’s aggressive accumulation of WBTC, in light of these industry shifts, adds a new layer of intrigue to the ongoing narrative in the crypto space.