The potential wrapped Bitcoin has on Ethereum and Bitcoin

Wrapped Bitcoin is a new innovative token that aims to bridge the gap between the Ethereum and Bitcoin blockchains. The joint venture between BitGo, Kyber Network and Republic Protocol Wrapped Bitcoin was launched on October 26, 2018.

The new Bitcoin ERC20 token will fill the worlds of the two main cryptographic resources in the idea that fundamentally allow Bitcoin to be traded against other resources on decentralized exchanges based on Ethereum, bringing liquidity from Bitcoin to Ethereum and allowing a completely new suite of Ethereum enabled Bitcoin applications.

As stated by CryptoGlobe:

"In a significant detachment from other types of asset-backed tokens like the USD stablecoin – which have been indicted for their perceived lack of transparency – the project aims to ensure transparency by" coining "and burning tokens in a way that is publicly verifiable on both the Bitcoin and Ethereum blockcoins. "

In a recent interview, the CEO and co-founder of Kyber Network, Loi Luu discussed the project its origins and what its potential impact on the cryptic economy.

One of the first questions Luu has asked is whether Kyber and the Republic are buying all the initial Bitcoin liquidity for launch and whether they have an estimate for the amount of Wrapped Bitcoin issued at launch:

"We will certainly guarantee initial liquidity, but we expect other traders or partners to do the same, I can not speak for the others, but Kyber will provide at least $ 1 million in Bitcoin."

After being asked where the highest Wrapped Bitcoin request will be after launch, Loi Luu said:

"Decentralized exchanges and other financial protocols like Dharma, Compound Finance and Indexed funds .Do you want more exchanges and custodians to join? For example, Coinbase as it has a DEX product, bitcoin liquidity and a custody solution of sorts, would be a partner or Do you see a potential competitor? "

Last but not least, Luu was asked if he thinks this will increase the value proposition for Ethereum and Bitcoin:

"Absolutely, WBTC helps you get the best out of both worlds: bring the most popular cryptocurrency (in terms of market capitalization and trading volume) to Ethereum and allow it to be programmed with clever expressive contracts on Ethereum."

What are your thoughts? Let us know what you think in the comments below!