Red Lever Pulled on Bitcoin-Ethereum Bridge Two Days Post-Launch


tBTC – Bitcoin (BTC) on Ethereum (ETH) project by venture production studio Thesis – was put to sleep just two days after its launch on the mainnet.

tBTC is a project meant to bridge Bitcoin and Ethereum by allowing BTC owners to access decentralized financial applications that run on Ethereum, turning their coins into tBTC – the ERC-20 token that is a representation of Bitcoin on Ethereum. It can then be used to trade using leverage, as a collateral to earn interest, etc. tBTC could then also be changed back into BTC.

However, two days after CEO and founder of Thesis, Matt Luongo, had announced that the first tBTC was minted on mainnet, saying that, despite BTC and ETH communities not always getting along, it was time for interoperability – the team “pulled the red lever, pausing deposits for the next 10 days, and are helping users drain funds,” promising to rise again.

Luongo refused to share the reasons behind the move in the comments and stated that the details will be provided in a deep post-mortem, though he added that more information will be out tomorrow.

There aren’t many speculations currently about what may have happened either, with people commenting on the difficulty of making smart contracts. Others have suggested it might’ve been an oracle issue, and shared a previous tweet by Luongo from 2019, according to which he allegedly said that “it took like two minutes to build something as robust as Chainlink,” which is a decentralized oracle network.

Other reactions:

Little do people know that when they make use of things like tBTC, or wBTC, or whatever comes next, that they are trading the security of their #Bitcoin for something much more risky. There really is no good reason for any of this.

— TheBitcoinHodler [Jan/3 ] (@thebtchodler) May 18, 2020


people were arguing with me just 3 days ago that *this* wrapped btc would thrive where others failed..

Y.A.W.B dead.

— I am Nomad (@IamNomad) May 18, 2020

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