Bitcoin Forum

So apparently, soBTC de-pegged and crashed to ~3000$ earlier today. The cause? FTX:


Just thought I'd use this to remind beginners that WBTC is not the real bitcoin and you shouldn't be using it, especially if your plan is to hold for the long term.

If you want to read more about the risks involved, you can check this article: https://medium.com/wanchain-foundation/how-safe-are-todays-wrapped-btc-bridges-b0f35a7b15e2

Definitely since wrapped BTC is just based on trust to the blockchain that holding the reserves for the equivalent value of Bitcoin. Buying and holding this wrapped Bitcoin is like buying a clone copy item which doesn't have value in the long run.

Bitcoin fee is already cheap and transaction fee is decent. I don't understand why people still purchased Bitcoin on other chain.  :D

I remember when I joined bitcointalk, that was when I knew I was getting a lot wrong. Example is 'who is the creator of BCH, BSV bitcoin gold, bitcoin diamond? My answers were Satoshi Nakamoto, but I was wrong, Sotoshi only created bitcoin (BTC). I joined this forum before I knew all that and saw how centralized people wanted to take over bitcoin but they all failed.

If you want to withdraw bitcoin (BTC) on exchanges, you will see those fake networks like Ethereum, Binance chain and some other networks which are all not the real bitcoin but pegged and existing on another blockchain entirely. They have low transaction fee which will encourage novice. But not only that, many newbies are confused, some thought they are actually bitcoin, not knowing they are only stable coins, but if anything wrong happen, it would become depegged and fall in value than the real bitcoin.

I've held quite a bit in the past to do defi stuff. I've not held any for over 6 months though (because of the drop in prices) but I think it's probably the main reason wbtc was/js used and had/has a high market cap.

It might be premature to say it won't be collateralised enough to return the peg but it will probably need a 1:1 buyback now to survive.

Bitcoin is just on a class of its own, which happen to be the head of them all, I think it's crazy enough for people to over look such and decided to go for merely clone product, when the original one is still available, As far as I'm concerned Bitcoin is essential and will continue to remain the biggest and the best of them all. I will always choose the king over the rest at all times

I wouldn't even make a mistake of buying a clone BTC, For what reason, there's no possibility that it will grow and be more powerful than BTC itself, so I see that in my opinion as a total waste of a precious time, if it's Alt Coin, I will understand that you're looking for quick money and then get out of the system,but as long as Bitcoin is involved, it's all about holding for me

I think there should be a standard to it right now where newbies before joining an exchange read not only the term and conditions but how to use the exchange itself. I have used Binance and I have also tried withdrawing Bitcoin from it and those other networks came up, but something was very clear and that's which is fake and which isn't, the network names where boldly written and it would take a Newbie that doesn't observe to fall for some fake.

Also as a Newbie and not used to all that it's best to ack a more experienced person who has used the exchange.

If you're a casual trader, WBTC has some advantages, especially when using DEXs and DeFi stuff, but if you're someone who wants to hold for the long term, it's definitely inferior to investing in the real bitcoin.  I think the same thing applies to stablecoins, although they have their purpose sometimes, it's always good to remember what happened recently with Terra Luna and their TerraUSD. They were one of the largest stablecoin issuer and one day they just disappeared with everyone's money. 

I wouldn't buy any crypto that has more than three letters in its abbreviation like WBTC to hold it for long term instead I only use it in different ways like trading for example and exchange it to another crypto that I am confident enough to hold long term like BTC. It may have advantages but it's just another crypto that is based on Bitcoin. I would say that if Bitcoin didn't exist and become known to many people then I don't think that those wrapped crypto and other crypto won't exist or won't be created in the first place.

 The letter 'w' in front of the BTC is enough reason already to rethink the authenticity of this crypto, WBTC. It almost looks like an imitation, or a second option for BTC. No doubt some persons will still try using them.
BTC is more long term friendly, and always with the possibility of rising with timing that those in it, who understands its authenticity better. After all, it is like a mother to all other crypto that have come along so far.

The most deceptive part of this WBTC is that it has bitcointalk.org has it's included community on coingecko (https://www.coingecko.com/en/coins/wrapped-bitcoin-sollet) as well as the official site of  Bitcoin.  Newbies could mistake it for an extension of Bitcoin project maybe another hard-fork. The force of the plunge is getting even stronger currently it is trading below $2, 300. I have searched to see if it has a white paper but nothing of such exist. Many must have fallen for this with the mindset of investing in Bitcoin

Sincerely speaking I m really learning a lot from here because to me alone I don't even imagine myself knowing is not bitcoin at then why anytime I login to my exchange account more especially Binance and I want to make deposit I would term it all to be classes of bitcoin since they share same address on exchange.
BTC
BCH
BSV
They both using same address and I will say they are one. After being active and reading lots of update here made me to understand their differences.

Wrapped BTC is not real BTC
SoBTC is not real BTC
Other tokens are similar to Wrapped BTC or SoBTC are not real BTC.

--> Don't touch them  ;D

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In addition, cryptocurrency bridges are very vulnerable to hacks at the moment. Don't put your capital at risk by using tokens are related to bridges.

Blockchain Bridges Keep Getting Attacked. Here's How to Prevent It (https://www.coindesk.com/layer2/2022/10/14/blockchain-bridges-keep-getting-attacked-heres-how-to-prevent-it/)

Some hacks on crypto bridges that I can name.

• Axie Infinity Restarts Ronin Bridge Months After $625M Exploit (https://www.coindesk.com/business/2022/06/28/axie-infinity-restarts-ronin-bridge-months-after-625m-exploit/)
• BNB Chain Halts After 'Potential Exploit' Drained Estimated $100M in Crypto (https://www.coindesk.com/business/2022/10/06/binance-linked-bnb-price-falls-close-to-4-on-hack-rumors/)
• Blockchains Have a ‘Bridge’ Problem, and Hackers Know It (https://www.wired.com/story/blockchain-network-bridge-hacks/)
• Over $2 Billion Stolen This Year In Blockchain Bridge Hacks Expose DeFi’s Achilles Heel (https://www.forbes.com/sites/mariagraciasantillanalinares/2022/08/18/over-2-billion-stolen-this-year-in-blockchain-bridge-hacks-expose-defis-achilles-heel/?sh=550e495fe50b)

Wrapped Bitcoin on Solana (soBTC) is literally going to become worthless. According to CoinGecko, $soBTC is trading at $2,600.00, and $soETH is trading at $1,038.00. Both are seriously depegged.

https://i.imgur.com/wK9KYd8.png
https://www.coingecko.com/en/coins/wrapped-bitcoin-sollet

There's only one real Bitcoin.

100% valid, there is only one real Bitcoin. the interesting thing is if we type BTC in coinmarketcap search, we will see 100 results, and out of all of them, only one is real.

https://i.imgur.com/KtcUqsv.png

even this clearly looks real very fake.

https://i.imgur.com/aGy522z.png
https://coinmarketcap.com/currencies/sbtc/

I never heard about sBTC before but I am not surprised with this price swings and it's likely it will go to zero soon together with Solana.
Most of the altcoins and their blockchains should never exist, they are centralized money grab schemes, and this started to be more serious when they started to print fake bitcoins.
Just take a look at Coingecko website category Tokenized Bitcoin, and you will see other worthless crap representing fake BTC, but I am sure there are more not listed here:
https://www.coingecko.com/en/categories/tokenized-btc

That's why I don't accumulate those wrapped tokens whether it's btc, ethereum or any other altcoins.

I'd like the more precise and genuine thing without it having wrapped. It's a warning for those that thinks they own the real thing, the real token but just holds the wrapped version.

Take out your assets from those wrapped tokens and convert it to the real one.

This is one of those "i told you so" moments since we've all been warning about it for years.

The problem is that people can't see the difference between a fake promise and actual peg. What all these tokens do is that they give a fake promise to convert your useless token to bitcoin at a promised rate (eg. 1:1) but they can always break that promise and change the rate to something like 1000:1 if they wanted to and there is nothing the user can do about it!

We have the same problem with stablecoins too since these days many newbies are converting their coins to them. There is no guarantee that  said coins keep their exchange rate. For example 1 USDT could easily be traded for 0.1 USD instead.

Definitely not saying that people should be holding WBTC for the long term, but just to answer your question — it's the fact that you can buy WBTC through "DEXs" on other networks(Ethereum/Solana/etc) using stablecoins.

It applies to any 'pegged' coins, only original is real. Such assets should never be held for long term assuming them to be original.

Anything other than Bitcoin is an altcoin no matter the name.