TBTC token is suspended

Trading in the Bitcoin-backed stablecoin tBTC was interrupted almost immediately after the start due todiscovered vulnerability.

An ambitious attempt to create a version of Bitcoin foruse on the Ethereum network failed after just two days. Project CEO Matt Luongo announced on Twitter that he has disconnected tBTC from the network and will soon issue an official release about the vulnerability found. 

According to BTConEthereum.com, a total of 7.13 bitcoins ($ 68,000) were blocked in tBTC. All deposits were suspended for 10 days for a full analysis of the discovered vulnerability.

Tokenized version of BTC – this is the waymake the first cryptocurrency usable on the Ethereum network. tBTC can also be used in decentralized finance applications (DeFi). The system uses smart contracts to lock a certain number of bitcoins and unlock a tokenized version of BTC on the Ethereum network.

 tBTC relies entirely on smartcontracts, its code had to be error-free. Stopping the tBTC project should reduce the risk of losing money. But the fact that the developers were able to “pull the red lever” and stop the project raises questions about how decentralized it really was. 

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