Thanks for taking up my challenge. I
completely disagree! You say the trading is decentralized, but the token itself is not. The first site isn't loading (on Tor), the second site shows there's 43 billion dollar on Ethereum.
Wrapped Bitcoin claims to hold 140,000 Bitcoin.
Their website shows "All WBTC issued will be fully backed and verified through on-chain proof of reserves.". There's very little information for a site who's WHOIS information is private. I also have a hard time believing
Tether has 130 billion dollars on a bank account somewhere (and even if they do, they'll have a very hard time withdrawing it).
It goes against the very basics of Bitcoin: "be your own bank", "not your keys, not your coins" and "verify, don't trust".
When you buy Bitcoin, you know you buy a volatile asset that you and only you control. When you buy Ethereum tokens pegged to
whatever, you have to rely on a third party. It all screams
Bitconnect to me. What happens to the value of your wrapped Bitcoin when the guy who holds the reserves pulls an exit scam? It's a bit like having US dollars pegged to gold. Until
someone decides to end it and you're left with money that loses value over time.
Would you believe it if someone sells you gold bars on Ethereum?
If we talk about YUSDT and WBTC, then their tokens are centralized.
You can use DAI and renBTC. You will be able to perform an exit scam on a smart contract, because you will lose collateral, which is much higher than the cost of bitcoins or stablecoins. Any smart contract has the risk of error or hacking, but so far these projects have not been hacked.
This is much better than centralized exchanges because you keep your coins and anonymity.