Key takeaways:
- One exchange that Justin Sun owns, Poloniex, offers a wrapped bitcoin product on Tron that is now trading at a discount of more than 20%.
- The last item is important since a significant portion of the bitcoin held at HTX is included in Poloniex’s WBTC on Tron offering.
One exchange that Justin Sun owns, Poloniex, offers a wrapped bitcoin product on Tron that is now trading at a discount of more than 20%
One exchange that Justin Sun owns, Poloniex, offers a wrapped bitcoin (WBTC) product on Tron that is now trading at a discount of more than 20%.
Only 79% of the value of BTC has been swapped for WBTC versus BTC on Tron, with nil volume trading activity for the WBTC pair over the past day.
Protos had been promised a “proof-of-reserves,” but Poloniex has neither delivered it nor disclosed to them where it stores the bitcoin for this WBTC product.
Protos has contacted Poloniex once more to obtain further information regarding the product’s reserves, the timeline for the exchange to fulfill its promised proof-of-reserves and the nature of the relationship between Sun-owned Poloniex and Sun-advised HTX.
The last item is important since a significant portion of the bitcoin held at HTX (previously Huobi) is included in Poloniex’s WBTC on Tron offering.
Based on the latest proof-of-reserves provided by HTX, this WBTC on Tron product accounts for more than half of all bitcoins on HTX, representing over 14,400 bitcoins valued at about $900 million.
Despite the depeg, WBTC can still be traded freely on Poloniex in pairs with Tether’s stablecoin, USDT. Poloniex and HTX have further connections, such as the Poloniex support website hosting the “Huobi Platform User Agreement” page.
WBTC seems to be holding onto its BTC peg in the HTX, but it shows zero trading activity in the pair in the last 24 hours.
Not only HTX and Poloniex, but JustLend is holding around 92k bitcoins worth at approximately $5.6 billion, making it one of the Sun-affiliated enterprises exposed to this WBTC on Tron offering.
In conclusion, JustLend, Poloniex, and HTX are exposed to large market discounts due to this WBTC on Tron products, whose issuer refuses to disclose where the product’s reserves are stored.
