Coinbase, the largest US-based cryptocurrency exchange, has announced the delisting of XRP, Bitcoin Cash, and Ethereum Classic. The move is based on Coinbase’s “low utilizationIt is one of the coins that will be removed from exchanges as of January 2023.
With coins being removed from Coinbase wallets in just over a month, those holding assets will have to decide what to do with them as the deadline is approaching.
Why XRP, Bitcoin Cash and Ethereum Classic Are Delisted
It is not uncommon for coins to be delisted from exchanges and wallets for reasons such as low usage.
XRP in particular has been plagued with controversy.Most recently it was Legal battle with US Securities and Exchange Commission (SEC) ongoingThe SEC lawsuit, the native cryptocurrency of digital payment network Ripple, raises more than $1.3 billion through the company’s “unregistered ongoing digital asset securities offering,” from which the company’s founder personally claim to have made a profit.
Meanwhile, both Bitcoin Cash and Ethereum Classic recently experienced so-called “hard forks”. This involves splitting the blockchain in two.
Hard forks usually occur when there is disagreement within the coin community about the direction of the blockchain. origin protocolis the company that created OriginDollar, a yielding stablecoin, and Origin Story, an NFT platform.
“half [coin’s] The community wants blockchain to go one way, and the other half wants to go the other way,” said Fraser. “When this happens, the person who had the coin becomes two and the value is split.”
In the event of a hard fork, one of the coins may be dominant while the other has little adoption or value. According to Commodity.com.
All of these factors likely contributed to Coinbase’s decision to remove the coin from its wallet this week, Fraser said.
“Coinbase supports many digital assets. They have their own process of choosing what they want to list and what they don’t want to list. and so many other things,” says Fraser. “We also see that assets get delisted when there is not enough interest in them and they are not traded enough. So exchanges are not making a profit from them.”
What does delisting mean for your fund?
Importantly, assets removed from the Coinbase wallet will not be lost as a result of this week’s decision.a a statement was issued According to the company, any unsupported assets remaining on Coinbase after the January deadline will continue to be associated with each user’s address and accessible through the owner’s Coinbase wallet recovery phrase.
“To view or transfer these assets after January 2023, you will need to import your recovery phrase into another non-custodial wallet provider that supports these networks,” Coinbase explained.
in short, Coin assets are completely safe Since January, co-founder Reeve Collins said, tether, First and largest stablecoin and co-founder smart media technologya Web3 and blockchain solutions company.
“Just because it’s not on the list doesn’t mean it’s at risk,” Collins explains. “It will be stored in Coinbase until you decide to move it out of Coinbase.”
Delisted assets are safe, but leaving them on Coinbase may not be the best option, Collins added. “It’s like keeping cash in a vault somewhere,” he said. “At some point we have to move them out of Coinbase or we will not be able to trade or sell them.”
The good news is that all three coins are still very popular in the cryptocurrency world and have many other options for long-term storage and use.
Options for Delisted Coins
Those who hold assets in XRP, Bitcoin Cash, or Ethereum Classic can choose to keep their coins in custody, move them to another exchange, or even sell them.
If you talk to any cryptocurrency expert, chances are you’ll hear the phrase, “It’s not your key, it’s not your coin.” This is a common mantra that refers to what is often seen as best practice in the cryptocurrency world: self-storage of coins. Storing your coins on an exchange means giving up control over your coins and keeping the exchange’s promise that your coins will be there. As the recent collapse of his FTX exchange shows, these promises are not always kept.
In the current case of Coinbase delisting a coin, both Collins and Fraser suggested that the best first step would be to remove the asset from the exchange and store it in your own wallet.
“The hardware wallet Ledger supports all three of these coins.
Sign up for another exchange
Those who are into all things crypto know this already, but there is much more cryptocurrency exchange Besides Coinbase. Once XRP, Bitcoin Cash, and Ethereum Classic are delisted by Coinbase, owners of these assets can choose to move them to another exchange.
“There are hundreds of different exchanges. There are different exchanges that are popular in different parts of the world,” said Fraser. “Coinbase is more popular in the US, but globally Binance is the largest exchange.”
Those who choose to move their coins to another exchange need only research beforehand whether the exchange supports XRP, Bitcoin Cash, or Ethereum Classic. However, Fraser and Collins said there are many exchanges that continue to support all three.
When to sell assets Cryptocurrency saleis generally a personal decision, but if you hold XRP, Bitcoin Cash, or Ethereum Classic, this is yet another option. Don’t forget, says Fraser.
“When you sell, you pay taxes,” Fraser explains. “If you hold a large amount of Bitcoin Cash and sell it now, you will be taxed.
Both Fraser and Collins conclude that all three delisted coins are still valuable. Coinbase’s decisions do not affect that reality.
“Coins that the community deems valuable are still valuable. Just because Coinbase doesn’t support them doesn’t mean they go away,” said Fraser. “Tens of thousands of people around the world love and support these coins.