Bitcoin pegged token, tBTC, has failed woefully after two days of its debut on the Ethereum supported mainnet after the coin was launched with the help of the MarkerDAO and compound support. The sole purpose of this launch was to establish a permanent place for leading digital asset, Bitcoin on the Ethereum network. The developer of the token, Matt Lungo, made a statement on Twitter where he stressed on the fact that the project suffered a disastrous end and will rise back sooner.
“This is not the end of the tBTC token, we will hopefully rise back and come back stronger in the coming year, but for now all entire operations relating to the token have been shut down. We are at this moment pausing all deposits for the next ten days and will help our client base withdraw their funds and pay it into another wallet of their choice”, Matt Lungo said. According to the developing team, a bug was cited which constituted to the shutting down of all operations and will not give a public statement again as they are looking for ways to withdraw customers funds.
What is the difference between tBTC and WBTC?
During the designing stages, the development team said they planned to make the tBTC more unique than the WBTC in terms of decentralization. To actualize that aim, they made the tBTC rely on just smart contracts rather than other institutions that the WBTC relied on. The developers created KEEP, a platform that enables holders of the token to create and control smart contracts with the use of Bitcoin deposits.
tBTC made a good mark on the first day of its launch after it amassed a total of 7.13 Bitcoin which was worth $68,000 locked up on the platform. WBTC, in turn, has a total of 2,296 Bitcoin locked up in total.
Is a smart contract bug responsible for the performance?
With major analysts and investors speculating on what could be the reason behind the woeful performance of the tBTC on the mainnet, some have said that it might probably be a smart contract bug. According to a report submitted in August 2019, it shows that 60% of tokens suffer from smart contract bugs. 25% of smart contracts have been said to contain serious bugs, and with tBTC using smart contracts, that might be the where the problem started from.