[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Gideon š,š [@iamgiddy5](/creator/twitter/iamgiddy5) on x XXX followers Created: 2025-07-24 20:00:29 UTC On @PortaltoBitcoin Lesson, we'll be checking Wrapped Asset Risk Now they say āWrapped assets are like monopoly money. Fun yea?? until someone wants real value.šš Wrapped tokens are copies of real assets (like BTC or ETH) that live on other chains. To work, they depend on bridges and custodians to lock the real asset and issue a fake version. If that system breaks? Your āwrappedā tokens become worthless. Now Imagine you lock up real BTC in a smart contract, and get wBTC on Ethereum. If the custodian holding your BTC gets hacked or disappears like incase of CBEX, your wBTC is toast. Thatās not decentralization. Thatās rehypothecation in a new outfit. Now this is important because Portal ditches wrapped tokens completely. You only swap native BTC for native ETH. No wrappers, no third-party holding vaults. That means lower risk, fewer points of failure, and a more trustless future. All this seems sweet to our ears buh Wrapped tokens still dominate DeFi, so some might see Portalās native-asset-only design as limiting in liquidity early on. Adoption will hinge on strong BTC and ETH liquidity pools, and clear messaging to help users unlearn what theyāve been taught about āwrappedā being normal. I am excited to see how @PortaltoBitcoin mitigate this @PortaltoBitcoin @SmallStarinSky XXX engagements  **Related Topics** [mint](/topic/mint) [coins interoperability](/topic/coins-interoperability) [money](/topic/money) [monopoly](/topic/monopoly) [bitcoin](/topic/bitcoin) [coins layer 1](/topic/coins-layer-1) [coins bitcoin ecosystem](/topic/coins-bitcoin-ecosystem) [coins pow](/topic/coins-pow) [Post Link](https://x.com/iamgiddy5/status/1948473379679310017)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Gideon š,š @iamgiddy5 on x XXX followers
Created: 2025-07-24 20:00:29 UTC
On @PortaltoBitcoin Lesson, we'll be checking Wrapped Asset Risk
Now they say āWrapped assets are like monopoly money. Fun yea?? until someone wants real value.šš
Wrapped tokens are copies of real assets (like BTC or ETH) that live on other chains. To work, they depend on bridges and custodians to lock the real asset and issue a fake version. If that system breaks? Your āwrappedā tokens become worthless.
Now Imagine you lock up real BTC in a smart contract, and get wBTC on Ethereum. If the custodian holding your BTC gets hacked or disappears like incase of CBEX, your wBTC is toast. Thatās not decentralization. Thatās rehypothecation in a new outfit.
Now this is important because Portal ditches wrapped tokens completely. You only swap native BTC for native ETH. No wrappers, no third-party holding vaults. That means lower risk, fewer points of failure, and a more trustless future.
All this seems sweet to our ears buh Wrapped tokens still dominate DeFi, so some might see Portalās native-asset-only design as limiting in liquidity early on. Adoption will hinge on strong BTC and ETH liquidity pools, and clear messaging to help users unlearn what theyāve been taught about āwrappedā being normal.
I am excited to see how @PortaltoBitcoin mitigate this
@PortaltoBitcoin @SmallStarinSky
XXX engagements
Related Topics mint coins interoperability money monopoly bitcoin coins layer 1 coins bitcoin ecosystem coins pow