Bitcoin Cash, XRP, Stellar Lumens, and Ethereum Classic on the chopping board.
•Coinbase is dropping support for Bitcoin Cash, XRP, Stellar Lumens, and Ethereum Classic after reporting a major decline in interest and use from its clients.
• According to Coinbase, January 23 will be the deadline for users to view and transfer their tokens to another wallet provider.
• The move comes as a result of low usage from Coinbase’s clients.
• Retail investors are investing heavily in Bitcoin despite all the negative news surrounding the crypto market.
Coinbase drops tokens
Coinbase, one of the most popular cryptocurrency exchanges, is dropping support for Bitcoin Cash, XRP, Stellar Lumens, and Ethereum Classic. According to Coinbase, January 23 will be the deadline for users to view and transfer their tokens to another wallet provider. The move comes as a result of low usage from Coinbase’s clients.
Bitcoin Cash, XRP, Stellar Lumens, and Ethereum Classic are all down sharply today on the news. Bitcoin Cash is down 5%, XRP is down 4%, Stellar Lumens is down 3%, and Ethereum Classic is down 2%. Bitcoin, on the other hand, is up 1% despite all the negative news surrounding the crypto market. It appears that retail investors are still bullish on Bitcoin despite the bear market.
Why Is Coinbase Dropping These Tokens?
Coinbase is dropping these tokens due to low usage from its clients. In a blog post, Coinbase said that “these assets have had low trading volumes and orders over the past several months.” As a result, Coinbase has decided to focus its efforts on other assets that are more popular with its clients.
Crypto-assets have seen a major decline in interest and use from Coinbase clients, causing the popular exchange to drop support for Bitcoin Cash, XRP, Stellar Lumens, and Ethereum Classic. The move comes as a surprise to many in the crypto community, as Coinbase had been one of the leading exchanges for these assets. However, it appears that the lack of interest is simply not sustainable for the company. In a statement, Coinbase said that it will continue to evaluate other crypto-assets for listing on its platform but that it will only do so if there is “sufficient demand from our customers.” For now, though, it seems that the focus will be on the remaining assets that are still seeing significant use. This decision is likely to have a major impact on the prices of these assets, so investors should be sure to monitor the situation closely.
Coinbase has done this before
This isn’t the first time Coinbase has pulled the plug on an unpopular asset. In September of 2018, Coinbase delisted Zcash due to low usage. At the time, Zcash was only trading on Coinbase Pro and not on Coinbase’s main platform. But even then, Zcash’s daily trading volume was only $1 million. In comparison, Bitcoin’s daily trading volume is currently $4 billion. So it’s not surprising that Coinbase decided to cut ties with Zcash given the lack of interest from its clients.
It remains to be seen if other exchanges will follow suit and delist these tokens as well. Binance recently announced that it would be adding XRP as a base currency so it doesn’t appear that Binance is worried about low usage just yet. But if usage doesn’t pick up soon, don’t be surprised if Binance decides to delist XRP in the near future as well.
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