WBTC depegs out of the 1:1 zone with BTC which worries many investors as Alameda is the largest WBTC mint, with over 100,000 WBTC. 
Wrapped Bitcoin is a representative version of Bitcoin on the Ethereum chain. This coin packaging helps Ethereum take advantage of the large capital from the top 1 coin in the market, while minimizing barriers related to transaction fees, helping the DeFi market develop more smoothly.
According to the data chart made by @Messari_Jack, since Terra collapsed in May, WBTC supply continues to decrease, current circulating amount is around 225,708 WBTC, while WBTC official website shows there are 235,452 BTC is detained.
Source: Dune
It is worth noting that Alameda Research is the largest WBTC miner, with over 100,000; The second largest is Coinlist, which has been having trouble withdrawing recently, with over 48,000 minted.
A total of 72k #WBTC cannot be reclaimed by #Alameda investors, aka #FTX users, since they are both bankrupt! Who exactly owns those 72k #BTC now? Are they even real? What a mess. pic.twitter.com/X6GvM1EZBK
— Duo Nine | discord.gg/ycc (@DU09BTC) November 25, 2022
Due to the storm of Alameda and DCG’s Genesis, many investors are concerned about the WBTC split, WBTC/BTC is currently around $0.993, yesterday’s low was $0.985. According to @castacrypto, Alameda Research has acted as a seller from the Wayback Machine since September 28, 2020, but Alameda can only mint BTC without guaranteeing custody.
Alameda is no longer listed as a merchant and the name cannot be found on Alameda’s CUSTODIAN Wallet audit page. Checking the CUSTODIAN wallet shows that the last 5000 BTC were withdrawn on November 11, shortly after the FTX crash, and these BTC were eventually redistributed to other verified custodians.
The prolonged peg loss has raised alarm bells in the investor community, with some linking the contagion to the significant delay in redemption at BitGo, the custodian of the protected Bitcoin protocol. BitGo COO claims that each WBTC is backed 1:1 and can be verified on-chain. BitGo is only a custodian – all end-user minting/burning must go through a merchant in the WBTC network or on an exchange.
BitGo is just the custodian — all end user minting/burning must go through one of the merchants in the WBTC network or trade it at an exchangeIf folks capitulates to fake news, the market makers win — every WBTC is 1:1 backed, verifiable on chain
— Chen Fang (@chenbfang) November 25, 2022
Meanwhile, the price of Wrapped Bitcoin (WBTC) is currently at 0.9836 BTC, compared to the value of 1 Bitcoin it should maintain. The depegging resulted in a difference of around $250 between BTC and wBTC. As of writing, wBTC price stands at $16,256, down 1.40% in the last 24 hours. Whereas Bitcoin price is currently at $16,528.60, down 0.29% in the last 24 hours.
24h WBTC price chart. Source: CoinMarketCap
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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