Wrapped Bitcoin is regarded as Bitcoin, which has been converted and is being used on the Ethereum network. With this token, users can interact with the several decentralized apps currently operational in the Ethereum ecosystem. On Ethereum as a blockchain, it represents __[Bitcoin](https://coinmarketcap.com/currencies/bitcoin/)__.
All +/- % changes are for a 24 hour window
Wrapped Bitcoin (#WBTC) Stories Around the Web
## History of WBTC
The token was launched on January 31, 2019, after a teaser announcement in 2018. WBTC came into existence as a project jointly worked on by several players in the decentralized industry, which includes BitGo, Set Protocol, Kyber Network, Dharma, and MakerDAO. By delving into Bitcoin, the project aims to add more liquidity to the Ethereum network. Currently, WBTCDAO controls the token, a group that, as of December 2020, had over 40 participants.
WBTC as a token became usable with decentralized apps like Dharma and Compound right after its launch. Just eight months after it was introduced, the token experienced a conversion of about $800 million worth of Bitcoin to WBTC. Since its launch, the coin's price has been steadily enjoying an increase.
At its launch, its highest price was about $12,510, while its all-time low remained at $3,395. Presently, the coin is trading around the $36,000 range and is traded on numerous top crypto exchanges. The project has major DeFi investors like __[Kyber Network](https://kyber.network/)__ backing it up.
## Biggest Claims to Fame for WBTC
For this token, being backed 1:1 by a reserve against the price of Bitcoin as it closely tracks Bitcoin is a massive claim to fame. WBTC is quite similar to other projects on the Ethereum blockchain that mirrors Bitcoin's price. So Bitcoin holders can now be involved with the numerous decentralized apps on Ethereum and interact directly with them without selling their tokens.
WBTC's ability to incorporate Bitcoin owners has resulted in a lot of interest in the coin, and so its TVL since launch has skyrocketed. As a result, investors regard the coin as a long-term investment, promising due to its relationship with Bitcoin. Amazingly, the price of WBTC rose tremendously, with an increase of about 120% this year, going from $29,973 to $64,796 from January to April.
WBTC recorded a mint worth about $616 million of Bitcoin tokens in September 2020 due to the steady and rising number of participants and users converting BTC to WBTC. Most users adopt WBTC because it makes several activities such as crypto exchange and payment services relatively easy on the Ethereum network. In addition, WBTC effectively supports operations on wallets that work with Ethereum since an Ethereum node secures the token.
In January 2021, the token clinched a spot on the list of top ten digital assets based on market capitalization. For Bitcoin holders in the DeFi market, WBTC signals a significant outbreak.
## Criticisms Against WBTC
A major criticism about this coin is its sensitivity and strong ties to centralization since it still functions while depending on the issuing platform. Bitcoin cannot be automatically wrapped on Ethereum. For the wrapping to be made possible, a central program is required. Since the central program is needed, there can be an occurrence of manipulation. In addition, the principle of decentralization is eventually being undermined with the blockchain.
Vitalik Buterin and some stakeholders on Ethereum expressed such concerns on WBTC and its centralized nature, adding that it would gradually defeat the concept of decentralization. Other crypto investors believe that with tokens like WBTC, there would be a gradual and subtle shift, and the ecosystem might lose some element of being decentralized.
## The Team Behind WBTC
The token came into existence as a collaborative project between different players in the blockchain sector. Each of the firms involved contributed significantly to the development of the token. At the token's launch, Kyber Network and __[REN](https://www.coingecko.com/en/coins/ren)__ were merchants.
WBTC and its future continue to look good as it is a token on the Ethereum blockchain that allows for a liquidity boost of apps on the ecosystem. By introducing Bitcoin's fluidity into the decentralized market, the token's relevance and importance are strengthened.
As it is a stablecoin, the price is relatively maintained. The fact that the token tracks Bitcoin also gives it an added advantage. WBTC is one token whose prospect is positive. \n