World Liberty Financial Backs WBTC Amid cbBTC Controversy

World Liberty Financial (WLFI), the decentralized finance project backed by Donald Trump, has sparked significant attention with a recent transaction. Blockchain analytics firm Lookonchain reported that WLFI swapped its portfolio of 102.9 cbBTC, valued at $10.4 million, for 103.15 WBTC (Wrapped Bitcoin).

This decision aligns the project with WBTC amid Coinbase’s controversial delisting of the token.

World Liberty Financial Swaps cbBTC for WBTC

According to Lookonchain, Trump’s DeFi project made the transaction late Wednesday, clearing its cbBTC portfolio in favor of WBTC.

“Trump’s World Liberty Financial exchanged all 102.9 cbBTC ($10.4M) for 103.15 WBTC 4 hours ago,” Lookonchain reported.

The move follows Coinbase’s decision to delist WBTC, citing failure to meet certain standards as the primary reason for the move. As BeInCrypto reported, this decision attracted a lawsuit from aggrieved stakeholders.

At the same time, Coinbase’s own flagship bitcoin wrapper, cbBTC, has emerged as a successor to WBTC. In a rapid ascent, cbBTC recently achieved a market cap of $1 billion, signaling its growing adoption.

Despite the success of cbBTC, WLFI’s decision to exchange its holdings for WBTC is notable. The move highlights WLFI’s alignment with Justin Sun, the controversial founder of TRON DAO and a staunch critic of cbBTC. Sun has previously voiced concerns about cbBTC’s transparency and governance.

His advocacy for WBTC contrasts sharply with his critiques of cbBTC, solidifying his stance on the ongoing rivalry between the two wrapped Bitcoin assets.

Sun’s Influence Provides Context for WLFI Move

Sun’s ties to WBTC and WLFI provide a critical context for this development, suggesting why World Liberty Financial may have chosen sides. Justin Sun’s association with BitGo, the custodian of WBTC, is apparent. In fact, his influence has raised concerns about centralized control. Meanwhile, on November 25, Sun invested $30 million in WLFI, making him the project’s largest investor.

“We are thrilled to invest $30 million in World Liberty Financial as its largest investor. The US is becoming the blockchain hub, and Bitcoin owes it to Donald Trump! TRON is committed to making America great again and leading innovation. Let’s go!” Sun shared in November.

The following day, Sun was named an advisor to WLFI. The project welcomed him, emphasizing his role as a prominent figure in blockchain innovation. WLFI’s announcement highlighted Sun’s experience, calling it “instrumental as we continue to innovate and grow.”

“We’re honored to welcome Justin Sun as an advisor to World Liberty Financial (WLFI)! Justin is the founder of TRON DAO, an advisor to HTX Global, and a supporter of BitTorrent. A graduate of the University of Pennsylvania, he recently won Sotheby’s auction for the iconic banana artwork. TRON is among the world’s top 10 cryptocurrencies and one of the largest public blockchains. Justin’s insights and experience will be instrumental as we continue to innovate and grow,” WLFI noted.

WLFI’s ecosystem also benefits from partnerships that bolster its infrastructure. Chainlink powers the project’s operations, providing essential decentralized services. Notably, TRON is a key partner in Chainlink’s Scale program, further intertwining Sun’s ventures with WLFI’s growth.

Therefore, it may be accurate to conclude that WLFI’s decision to side with WBTC reflects its strategic alignment with Sun’s vision. By swapping cbBTC for WBTC, WLFI signals its trust in the latter’s established infrastructure and market presence. Sun’s significant financial backing and advisory role likely influenced this decision, as did his ongoing criticism of cbBTC.

The choice also positions WLFI as a project embracing blockchain’s global potential while supporting decentralized and cross-platform collaborations. With Chainlink and TRON’s backing, WLFI appears poised to leverage Sun’s resources and insights for future growth.