- Coinbase wallet says it will stop support for some tokens by January 2023.
- The crypto exchange says these tokens and their networks do not have consistent tradings.
- It has launched a “Coinbase wallet recovery phase.”
Coinbase, the largest cryptocurrency exchange in the United States, announced that it would cease support for XRP, BCH, XLM, ETC. The exchange announced that these tokens had recorded low usage in recent times.
Therefore, users will not be able to trade or buy them by 23 January 2023. Furthermore, the crypto exchange revealed that users are losing interest in these cryptocurrencies.
Similarly, mainstream media are passing negative news about them, shaping crypto enthusiasts’ and investors’ opinions. The exchange attributes these reasons for dropping support for these cryptocurrencies.
Coinbase To Cease Support For Some Tokens
As of January 2023, Coinbase will stop supporting BCH, ETC, XLM, and XRP tokens alongside their networks. Since the announcement, holders and investors of these tokens have sought clarification.
The first point of controversy is whether, by January 2023, if you own any of the assets, your holdings will be lost. That is, if you own either BCH, ETC, XLM, or XRP and the company stops the support, will you lose your investment?
Coinbase says your investment will remain intact and tied to your wallet address. Similarly, you can access them through your “Coinbase wallet recovery phase.”
Furthermore, those who hold these assets on the exchange beyond January 2023 will need to import their recovery phase on another custodial wallet. So they are expected to seek a custodial wallet that supports these coins and recover their tokens using the recovery phase.
Coinbase says those who receive the tokens no longer provide support for them— will risk losing those assets. This is because the exchange says it will classify them as unsupported assets.
Why Did Coinbase Delist These Tokens?
One of those digital assets that will no longer be available on the exchange is XRP. One wonders what could have happened for such a digital asset that posed a promising future. The Ripple (XRP) network was fast in processing payments and could process up to 50,000 transactions per second. However, the euphoric crowd behind the XRP ecosystem seems to have lost interest.
Similarly, Ripple has a case against the Security and exchange commission (SEC). Industry players believed this legal tussle could have accounted for the loss of interest in the XRP ecosystem. If Ripple network wins the court case, XRP might recover its “lost glory.”
Furthermore, Stellar Lumens (XLM), one of the tokens that Coinbase will cease to support, was created by a Ripple co-founder. It has struggled to maintain consistent trading on the exchange.
Similarly, the BCH is a Bitcoin Cash Fork. It was created due to disagreement between miners and developers when they could not reach a consensus. XLM and BCH are on the 25 and 26 spots on the Coinmarketcap list of the most valuable cryptocurrencies.
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