wBTC and BTC

[Turn it off]

I have a question, I noticed that the wBTC moves in lockstep with the price of bitcoin, that is, if the price of bitcoin is $20.000, the price of wBTC is also $20.000, is there any possibility of a price difference?

[Charles-Tim]

wBTC is an altcoin, it is possible that the price may depeg. It is not bitcoin.

If you want to buy bitcoin, do not buy those altcoins, buy bitcoin directly instead, instead of depending on wBTC developers. If anything bad happens to bitcoin, it will automatically happen to those altcoins pegged with bitcoin price. But if anything bad happens to those altcoins, nothing will happen to bitcoin to a significant extent.

I am not implying that anything would happen to bitcoin, it is the strongest coin that is still existing with the strongest blockchain, but just implying the need not to go for pegged coins.

[Nwada001]

I have a question, I noticed that the wBTC moves in lockstep with the price of bitcoin, that is, if the price of bitcoin is $20.000, the price of wBTC is also $20.000, is there any possibility of a price difference?

WBTC is an altcoin that they claim to be Bitcoin on another network, and as such, they trade it at the same price as BTC. It's said that he pegged BTC. But they are not real bitcoins, as there is only one bitcoin; any other ones are altcoins, as already explained by Charles-Tim. Don't get deceived; always hold your Bitcoin, as those pegged can be depegged anytime and the value might turn down to zero.

As their price is being backed up by the developers, if the project that pegged it fails today, then the price will definitely be no different from other shitcoins out there. We can use UST as an example of what happens to peg tokens; they're supposed to be equal to $1, but the Luna crash has made it otherwise.

[Cantsay]

Where did you get that idea from? You shouldn't mistake wBTC for BTC's alternate, an altcoin is an altcoin nothing more.

Like I said wBTC is an altcoin and as such the price can change at any time; I for one wouldn't want to gamble with my money by purchasing a cheap copy. Btw, what's there? If you're to buy any coin why not just go for the original?
wBTC ≠ BTC

I have seen a lot of people make that mistake thinking they are both the same thing since it's pegged to BTC, mostly when they are to withdraw their coin from an exchange.

[noorman0]

Yes there is a possibility. This is a good example case.

Under normal conditions, there is only a slight price deviation because between BTC wBTC and traded in different places. There may be a significant difference (even wBTC being zero) in the event of a trust failure, smart contract exploit, dummy token, or something else that goes wrong.

[Smartvirus]

I have a question, I noticed that the wBTC moves in lockstep with the price of bitcoin, that is, if the price of bitcoin is $20.000, the price of wBTC is also $20.000, is there any possibility of a price difference?

There is what they call pegging of commodities. Can’t say if that’s the proper name for the activity but, it is what it is as, it typically explains the situation in simple terms.

Pegging simply refers to having the value of a commodity maintained by the value of another. Don’t know if you got it but, that’s the idea. Like you’ve stated in OP, you have wBTC at $20 and so is BTC. The value keeps being maintained through all market conditions. It’s called pegging and you can say wBTC is BTC pegged.

Any commodity could be pegged this way but that doesn’t mean they assume the same value. wBTC is by far an altcoin and as such, it can’t be seen in the same way.

[SeriouslyGiveaway]

I have a question, I noticed that the wBTC moves in lockstep with the price of bitcoin, that is, if the price of bitcoin is $20.000, the price of wBTC is also $20.000, is there any possibility of a price difference?

Wrapped Bitcoin is a token on Ethereum blockchain, ERC20 chain.

About Wrapped Bitcoin

Wrapped Bitcoin is a tokenized version of Bitcoin (BTC) that runs on the Ethereum (ETH) blockchain.

WBTC is compliant with ERC-20 — the basic compatibility standard of the Ethereum blockchain — allowing it to be fully integrated into the latter’s ecosystem of decentralized exchanges, crypto lending services, prediction markets and other ERC-20-enabled decentralized finance (DeFi) applications.

WBTC is also backed by Bitcoin at a 1:1 ratio via a network of automatically monitored merchants and custodians, ensuring that its price is pegged to Bitcoin at all times and allows users to transfer liquidity between the BTC and the ETH networks in a decentralized and autonomous manner.

Wrapped Bitcoin was first announced on October 26, 2018, and officially launched on January 31, 2019.

It is a token minted with their promise to back 1 Wrapped Bitcoin by 1 bitcoin. You never know what they do with the custodian party to back their token. They can back the token with less than 1:1 ratio and the token can be de-pegged when it is brought to the light.

Their team advertise that they do it to bring Bitcoin to DeFi but why Bitcoin need to exist in DeFi which is for altcoins?

Wrapped Bitcoin is a token, an altcoin, not Bitcoin. You don't have to buy the token and have risk that it will be de-pegged. If you want to join DeFi, buy any token on ERC20 like USDT, ETH and you have that token on its main chain.

Buy WBTC and think you have BTC but it's not bitcoin.

[Learn Bitcoin]

I have a question, I noticed that the wBTC moves in lockstep with the price of bitcoin, that is, if the price of bitcoin is $20.000, the price of wBTC is also $20.000, is there any possibility of a price difference?

It's wrapped Bitcoin in different chains. Wrapped Bitcoin was dipegged multiple times in the last 24 hours. The coin was developed by a company named Bitgo. Buying wrapped bitcoin means buying an altcoin that can be zeroed anytime. The current Bitcoin price is over 30K, and the current wrapped Bitcoin price is around 23K. I won't be surprised if wrapped Bitcoin loses its value.

I consider it a scam coin. Do not buy wrapped bitcoin in any case. There is no use case for it. Do not stake your coin in centralized exchanges to get some profit. This greediness will lead you into a big lose.

[Faisal2202]

Well, i had the same query from the last discussion that i had on this issue when a member asked to deposit his/her BTC into Meta mask and the only way to convert those BTC into WBTC and i with many other members suggested this only way. But it was disliked by many other members.

The point is, i didn't knew that WBTC was altcoin, I am being honest here. So, dear OP i have suggestion that you should then stick to the BTC.

And, as many other members had indicated that WBTC is a ALT coin then simply you have to consider the logic of how BTC effected the ALTs. As, Charles-Tim has already explained in the most simplest way.
 

[sunsilk]

is there any possibility of a price difference?

Yes.

Once wBTC depegged its price towards Bitcoin then we'll see the price difference from it. Just as how the other stable coins depegged from its based currency which is the US dollars.

There's a possibility that wBTC will be gone out of its price and that's why if you're wanting to hold it, just hold Bitcoin - the OG and the real one and not with these wrapped bitcoins.

[Solosanz]

Remember, Bitcoin price is independent, while Wrapped Bitcoin price isn't.

This mean if Bitcoin price is $20K, there's no guarantee Wrapped Bitcoin price is $20K because the demand and supply is different, also the creator is completely different person. Wrapped Bitcoin is created by someone which can't be trusted because he can steal all of the investors' money.

[dzungmobile]

Remember, Bitcoin price is independent, while Wrapped Bitcoin price isn't.

This mean if Bitcoin price is $20K, there's no guarantee Wrapped Bitcoin price is $20K because the demand and supply is different, also the creator is completely different person. Wrapped Bitcoin is created by someone which can't be trusted because he can steal all of the investors' money.

Wrapped tokens can be de-pegged like SoBTC. Many reasons for a token de-peg like smart contract compromised, insolvency, inaccuracy of Oracle, etc.

If you are interested in, you can read this Why Wrapped Bitcoin depeg?

[TryNinja]

The current Bitcoin price is over 30K, and the current wrapped Bitcoin price is around 23K. I won't be surprised if wrapped Bitcoin loses its value.

Where did you see wBTC at $20k? That would be a great arbitrage opportunity since you can still unwrap it (redeem/burn) for real BTC onchain.

[Lucius]

Where did you see wBTC at $20k? That would be a great arbitrage opportunity since you can still unwrap it (redeem/burn) for real BTC onchain.

I guess he saw that information in WO because he is active there, and someone posted today that this token has been in a bit of a problem in the last 7 days. Honestly, I don't pay attention to any variations (forks) of BTC, not even to this wrapped version.

[Learn Bitcoin]

Where did you see wBTC at $20k? That would be a great arbitrage opportunity since you can still unwrap it (redeem/burn) for real BTC onchain.

I guess he saw that information in WO because he is active there, and someone posted today that this token has been in a bit of a problem in the last 7 days. Honestly, I don't pay attention to any variations (forks) of BTC, not even to this wrapped version.

No, I did not see this post until now. I saw the chart in Coinmarketcap today, and I just checked again and was shocked. They manipulated the chart for an unknown reason. I am not the only guy who has seen WBTC de-pegged. It was de-pegged for almost all day and now regained the peg. The main problem is they manipulated the chart. They removed actual 24h low data and adjusted it with real BTC. As far as I know, this happened because of a multichain sell-off.

I just checked Twitter and saw a lot of people also tweeted about it;

https://twitter.com/CoinSignals_/status/1679160710394421249?s=20
https://twitter.com/Mysteryofcrypt/status/1679317222106251266?s=20
https://twitter.com/KienThucCryptoC/status/1679165653734002688?s=20
https://twitter.com/TCNCRYPTO/status/1679164554964549632?s=20
https://twitter.com/DuctorMarcus/status/1678901842242158594?s=20
https://twitter.com/shadow_trader1/status/1677233543200616449?s=20

https://twitter.com/cryptomaxx150/status/1679210937956331541?s=20 Video recording.

[bullrun2024bro]

Where did you see wBTC at $20k? That would be a great arbitrage opportunity since you can still unwrap it (redeem/burn) for real BTC onchain.

I took some screenshots earlier today and posted about it on the German board. It looks like WBTC had a significantly lower price than BTC for several (!) hours. I just think that no large orders were possible during this period. If there were, some users certainly made a killing.

It looks like CMC already fixed their chat (since you won't find this dips anymore, if you check the chart now). This is what it looked like this morning:



Source: CoinMarketCap, 7 day WBTC Chart. https://coinmarketcap.com/currencies/wrapped-bitcoin/

[Coyster]

The point is, i didn't knew that WBTC was altcoin, I am being honest here. So, dear OP i have suggestion that you should then stick to the WBTC.

Now that you know Wrapped Bitcoin is fake and not Bitcoin, so it can be depegged and the people holding it will lose their real Bitcoins they deposited to receive Wrappped Bitcoins, why then should OP stick with them? There are enough good wallets to store Bitcoins, and if one wants to use a different blockchain, they should use their native tokens/coins and not risk their Bitcoins by wrapping it to become compatible.

[BIT-BENDER]

The point is, i didn't knew that WBTC was altcoin, I am being honest here. So, dear OP i have suggestion that you should then stick to the WBTC.

Now that you know Wrapped Bitcoin is fake and not Bitcoin, so it can be depegged and the people holding it will lose their real Bitcoins they deposited to receive Wrappped Bitcoins, why then should OP stick with them? There are enough good wallets to store Bitcoins, and if one wants to use a different blockchain, they should use their native tokens/coins and not risk their Bitcoins by wrapping it to become compatible.

What's the reason for anyone to get wrapped Bitcoin in the first place, I don't believe in that and also other Bitcoin fork s. It's risky, and definitely not Bitcoin, personally I don't see the reason why anyone would want a different Blockchain than the one available, everything about Bitcoin has been serving me properly and I don't have anything to look for things that has the name Bitcoin attached to them but not Bitcoin itself

[FinneysTrueVision]

Where did you see wBTC at $20k? That would be a great arbitrage opportunity since you can still unwrap it (redeem/burn) for real BTC onchain.

I guess he saw that information in WO because he is active there, and someone posted today that this token has been in a bit of a problem in the last 7 days. Honestly, I don't pay attention to any variations (forks) of BTC, not even to this wrapped version.

No, I did not see this post until now. I saw the chart in Coinmarketcap today, and I just checked again and was shocked. They manipulated the chart for an unknown reason. I am not the only guy who has seen WBTC de-pegged. It was de-pegged for almost all day and now regained the peg. The main problem is they manipulated the chart. They removed actual 24h low data and adjusted it with real BTC. As far as I know, this happened because of a multichain sell-off.

The line chart might just be showing a moving average to smooth out extreme fluctuations. If you change the view to the candlestick chart it will still show you how low the price went.  

WBTC proof of reserves are published online. As long as the custodian holding the collateral isn't facing issues, like FTX was when soBTC depegged, I would expect the price to return to normal.

It is a token minted with their promise to back 1 Wrapped Bitcoin by 1 bitcoin. You never know what they do with the custodian party to back their token. They can back the token with less than 1:1 ratio and the token can be de-pegged when it is brought to the light.

Their team advertise that they do it to bring Bitcoin to DeFi but why Bitcoin need to exist in DeFi which is for altcoins?

Wrapped Bitcoin is a token, an altcoin, not Bitcoin. You don't have to buy the token and have risk that it will be de-pegged. If you want to join DeFi, buy any token on ERC20 like USDT, ETH and you have that token on its main chain.

Buy WBTC and think you have BTC but it's not bitcoin.

USDT is just a wrapped version of USD. It is not real dollars. The same thing with the ETH that is traded on decentralized exchanges. It is actually wrapped Ethereum because the native token isn't ERC-20.

There are many reasons why someone might want to use wrapped BTC on other networks. Trading volatile tokens against the price of other volatile tokens is not very practical. Also, a lot of these tokens don't have great liquidity. DEXs would be dead without these wrapped currencies.

WBTC might not be real BTC but it is useful to DeFi traders and they are willing to accept the risks.

[TryNinja]

I took some screenshots earlier today and posted about it on the German board. It looks like WBTC had a significantly lower price than BTC for several (!) hours. I just think that no large orders were possible during this period. If there were, some users certainly made a killing.

It looks like CMC already fixed their chat (since you won't find this dips anymore, if you check the chart now). This is what it looked like this morning:

Could be API issues or people fat fingering the sell button (where others will arb and get it back on track), but wBTC didn’t lose its peg (neither with the custodian nor in the open market).

Actually, on Uniswap alone it has over $230m liquidity at the current BTC price: https://info.uniswap.org/#/tokens/0x2260fac5e5542a773aa44fbcfedf7c193bc2c599

It may be a shitcoin in the sense that it’s not real BTC and you don’t have the entire Bitcoin protocol security to protect you, but it isn’t a total failure yet.