Wrapped Bitcoin (WBTC) linked to Alameda Research is not backed up…how true is it?
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Answer Wrapped Bitcoin (WBTC) linked to Alameda Research is not backed up…how true is it?
WBTC encapsulated bitcoin is a digital token based on a blockchain network other than bitcoin, but it is of the same value as bitcoin as this digital token is supported by bitcoin, for more details about the nature of these digital currencies can be done through the link:
What are Wrapped Tokens?
Recently, and in the wake of the chaos surrounding the FTX exchange’s crash in recent weeks, speculation is now rife about the depegging of bitcoin envelope (wBTC) to the bitcoin price.
While rumors suggest wBTC is missing support because it belongs to Alameda Research, the BitGo team cited routine maintenance of the DAO multisig wallet rotation.
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BitGo’s order book for wBTC shows that there is a slight excess of total bitcoin supporting WBTC in the network.
This means that there are more bitcoins (BTC) to support the number of WBTC issued.
Is wBTC linked to Alameda?
Kia Musaere, product manager at BitGo, cited the assets being in cold storage.
Contrary to speculation about a connection with Alameda Research, he said the bankrupt company is not relevant in this case.
The speculation started after “Duo Nine”, who claims to be a technical analyst on Twitter, shared some data about wBTC holdings and unlinked them.
Share the data that showed that Alameda does not have support for wBTC, and it cannot be recovered now that it is bankrupt.
But according to a breakdown of BitGo’s wBTC order book, the company claims to hold 225,862 WBTC for a total of 235,452 BTC.
This means that BitGo is essentially holding around 10,000 excess bitcoins.
The company also has a control panel with bitcoin addresses controlled by the custodian.
Meanwhile, the price of Wrapped Bitcoin (WBTC) is currently 0.9836 BTC, compared to the value of 1 Bitcoin you should hold.
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Unlinking resulted in a difference of about $250 between BTC and WBTC.
At the time of this writing, wBTC-encapsulated bitcoin is worth $16,400, according to price-tracking platform CoinMarketCap.
While the price of Bitcoin is currently $ 16,500.
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