Coinbase has launched Proof of Reserves (PoR) for its cbBTC token. This initiative aims to reassure users that each cbBTC is backed 1:1 by Bitcoin. The move addresses concerns about transparency and centralized control in the crypto sector.
According to the PoR data, Coinbase holds 26,525.15 BTC to back a supply of 26,461.05 cbBTC tokens. These tokens are distributed across various networks.
Ethereum has the largest share with 16,080 cbBTC. Other networks include Base with 7,655.391 cbBTC, Solana with 2,673.489 cbBTC, and Arbitrum with 51.395 cbBTC. To boost transparency, Coinbase has disclosed its Bitcoin addresses and balances. The largest wallet contains 690 BTC, while 40 other wallets hold 480.984 BTC each.
This announcement follows criticism from the crypto community, especially from Tron founder Justin Sun. He criticized cbBTC for its transparency issues and centralized control.
Sun warned that centralized custody could lead to asset seizures by authorities. He claimed cbBTC lacked audits and could freeze balances at any moment. He expressed concern, saying, “Essentially, it’s just ‘trust me.’”
Despite Coinbase’s PoR, skepticism persists. Some users recalled past problems with Solana transactions on the platform. One user on X questioned Coinbase’s reliability, citing a delay in Solana deposits and withdrawals that lasted over 14 hours. Critics suggested that Coinbase might have been staking users’ SOL without their consent, leading to liquidity issues.
Another user summarized the situation, stating that Coinbase takes users’ SOL and stakes it for profit. If many users request their SOL simultaneously, Coinbase may not have enough to fulfill those requests.
Coinbase attributed the delays to “technical and blockchain issues.” However, users are still demanding more transparency. They want concrete evidence that their assets are liquid and accessible.
