The Ethereum based token backed by the leading cryptocurrency, Wrapped Bitcoin has just launched today following an announcement on the network's website. The currency is a joint initiative by the Kyber Network and the blockchain security company BitGo as well as others.
The development of the coin was announced by BitGo back in October with the being backed 1:1 by Bitcoin. A statement by the company went onto say that Wrapped Bitcoin will provide users with a “wide variety of new decentralized use cases including on decentralized exchanges (DEXs), as collateral for stablecoins or lending, for payments and flexible smart contracts within the Ethereum ecosystem.”
Wrapped Bitcoin (WBTC) is an ERC-20 token which is designed just for use on the Ethereum platform that makes streamline the creation of new tokens. For those that don’t know, ERC-20 tokens are the structure which developers use to build new tokens off sparing them from coding new crypto from the ground up.
Wrapped Bitcoin will purportedly allow for new applications and use cases for the leading cryptocurrency on the Ethereum network. As it says in the announcement from Wrapped Bitcoin network, “By bringing Bitcoin’s liquidity to Ethereum, WBTC also makes it possible for traders to use Bitcoin value for token trades on decentralized exchanges.”
Furthermore, the press release announcing the news says that all Wrapped Bitcoin smart contracts have been audited by third-party companies. In addition, it further states that proof of reserve showing an exact 1:1 ration of minted Wrapped Bitcoin to Bitcoin can be overseen on the chain.
In September last year, the blockchain security firm became a certified cryptocurrency custodian through the acquisition of a state trust company charter in the US state of South Dakota. As reported by CoinTelegraph, the company subsequently became subject to regulatory oversight in compliance with Know Your Customer and anti-money laundering AML policies.
At the current time of writing, there are 65 Wrapped Bitcoin in circulation, each at a price of $3,453.76 with the leading cryptocurrency, Bitcoin priced at $3,461 at the moment and a market cap of $60,614,029,666.
It’s worth noting that we are not financial advisors and this is not financial advice. Investing in cryptocurrency is very risky, so only invest based on your own research and invest with money you can afford to lose, always remember to trade safe!
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