ATTN: Despite BTC supply on exchanges hitting all time lows, BTC was still being dumped through Wrapped bitcoin tokens being minted in the thousands at a time and moved to exchanges.
https://ift.tt/tjpNF1wUm
Many bitcoin owners don’t seem to be aware of the huge surge in “Wrapped” BTC in recent months which also coincided with the crash. While real BTC on exchanges is reaching lows, **Alameda Research** is flooding exchanges with “Wrapped Bitcoin” at a growing rate to artificially dilute supply. This is contributing to the price suppression in recent months despite the supply decline:
Look at the dates where they move their WBTC to exchanges then look at the charts.
WBTC is claimed to be mainly for “defi” on ethereum and other platforms, but if that was the case, why are they being moved straight to centralized exchanges (specialls FTX and Huobi) right after their minting?
Even more interesting, there have never been any “burning” of the WBTC back into real Bitcoin (IE releasing the native btc in custody)
And of course, while they claim WBTC is backed 1:1 with real bitcoin, we have no way of knowing if the real bitcoin in custody isn’t also being lent. This basically dilutes the supply of bitcoin eliminating the aspect of scarcity.
Cryptocurrency
