Bitcoin to Ethereum Token tBTC Has Been Paused for Next Ten Days

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • Today, Matt Luongo, the project lead for tBTC announced on Twitter that the coin’s deposit service, ERC-20 token, had been stopped for the next 10 days.
  • After two days of mainnet launch, the tBTC’s smart contract has been stopped, maybe due to risk to depositors.
  • Though the project has been paused, for now, its reason to do so is still suspicious.

Today, Matt Luongo, the project lead for tBTC published on Twitter that the coin’s deposit service had been stopped. ERC-20 token stopped for 10 days. The tBTC project has currently paused the smart contract that will fetch the non-custodial Bitcoin to the Ethereum network.

tBTC Will Be Taken Offline After ERC-20 Token Stopped

After two days of mainnet launch, the tBTC’s smart contract has been stopped, maybe due to risk to depositors. However, the project will be further attempted to fix the issue and will be re-launched.

The founder of Keep Project revealed on Twitter that tBTC will be taken offline and users will be assisted in recovering their funds.

Though the project has been paused, for now, its reason to do so is still suspicious. While going through the replies on Luongo’s Tweet, it seems that the team has discovered a bug in the code.

Additionally, he shared a link stating it as the emergency Pause for new deposits for 10 days.

This is a young venture and these types of nascent events are expected by keeping in light of all weaknesses that have weighed down the DeFi space.

tBTC Is Difficult To Implement In A Non-Custodial Manner

Moreover, cross-chain applications such as tBTC are quite difficult to implement in a non-custodial manner. In 2020, tokenized BTC on the Ethereum network was the major talk in the market. 

tBTC is trying to implement this solution in a non-custodial method. The project is pursuing determined and sometimes dangerous tasks.  If users find susceptibility, a huge amount of collateralized Bitcoin could be at risk.   

tBTC is an ERC-20 token that is pegged 1:1 to Bitcoin. tBTC is backed by a decentralized attached multi-federated peg model. 

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