Coinbase's Bitcoin Loans Are Not What They Seem

Coinbase's 'Bitcoin-Backed Loans' are not actually secured by Bitcoin; they rely on cbBTC, a token that is centralized and managed by Coinbase, misleading users.

The BTC backing cbBTC is stored in reserves managed by Coinbase, which raises trust concerns. Actual Bitcoin-backed loans on the Bitcoin blockchain remain a goal.

Loans are facilitated via Morpho Labs, a DeFi platform that has no ties to Bitcoin, which undermines the authenticity of these 'Bitcoin-backed loans'.

Native Bitcoin-backed loans could help Bitcoin holders avoid hefty taxes when selling, a growing concern among long-term investors who wish to make significant purchases.

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