So I was on X/Twitter rambling about the high fee environment we are right now, people are interesting solutions such as Mercury Layer which will launch next month, Robin Linus just proposed this thing called zkCoins that according to could raise Bitcoin's throughput from 7 to 100 TPS without while also enabling covenants without the need for a soft fork, somebody said that Supertestnest's Hedgehog could be a great addition to Lightning, even Drivechains came into the discussion, now after all of this somebody proposed to use wrapped Bitcoin, and you just need to read how the thing is structure to know it's a complete scam:
- Coins are "bridged" by sending them to a multisig.
- A federation owns and controls the multisig.
- Nobody knows who the signers are.
- Users can't withdraw their Bitcoin unless they get the federations permission to do so.
- It uses its own "Blockchain technology".
- Completeley centralized development team.
- Their Blockchain can do, at max, 10 TPS, just ~45% more than Bitcoin.
- According to the owners, they have partnered with multiple exchanges but the only one that has enabled their wrapped Bitcoin so far is Bitfinex, which we all know are the guys behind Tether.
- Native support for Tether's unbacked dollar certificates and other shitcoins in their Blockchain.
The only good thing these guys get going for them is that in difference to Stacks (STX) and other wrapped Bitcoins is that they don't have a "Governance token", which absolves them from shitcoinery a little.
Here you have the project's homepage and their whitepaper, take a look at them.
The project is called "Liquid" and they claim they will be "The backbone of the global financial system of the future." but looks like nobody is using it.
Stop shilling this shit as a scaling solution for Bitcoin while it is just a WBTC but made by a company owned by a guy some people still suspect "He could be Satoshi" when he clearly is not.