- Coinbase Wallet will no longer support Bitcoin Cash (BCH) starting from Dec. 5.
- This decision is due to “low usage” of the token.
- Assets held in unsupported tokens will still be tied to users’ addresses and accessible through the Coinbase Wallet recovery phrase.
- This announcement applies only to the Coinbase Wallet app, not the exchange itself.
- It remains unclear why support for XRP, Ethereum Classic (ETC), and Stellar Lumen (XLM) was also removed from the Wallet app.
- Coinbase previously suspended trading for XRP in response to a legal action by the SEC against Ripple.
- Coinbase has recently supported investors in a lawsuit against the U.S. Department of Treasury over sanctions against Tornado Cash.
- Coinbase’s transaction revenue decreased by 44% from Q2 to Q3 of 2022.
Coinbase Wallet to Remove Support for Four Major Tokens
Coinbase announced on November 29 that its wallet, Coinbase Wallet, will no longer support four major tokens – Bitcoin Cash (BCH), XRP (XRP), Ethereum Classic (ETC), and Stellar Lumen (XLM) – and their associated networks. The decision was based on the “low usage” of these tokens. However, Coinbase emphasized that this change does not imply the loss of assets for users. Any unsupported assets held in the wallet will still be accessible through the Coinbase Wallet recovery phrase.
Clarifying Coinbase’s Delisting
It is important to note that the announcement refers specifically to Coinbase Wallet and not the exchange itself. Coinbase had previously suspended trading for XRP in January 2021 due to legal action taken by the United States Securities and Exchange Commission against Ripple, the company behind XRP. The reasons behind the removal of support for BCH, XLM, and ETC on the wallet app remain unclear.
Coinbase Supports Lawsuit Against U.S. Department of Treasury
Coinbase recently backed a group of investors in filing a lawsuit against the U.S. Department of Treasury over the sanctions imposed by its Office of Foreign Asset Control on crypto mixer Tornado Cash. This move by Coinbase demonstrates its commitment to advocating for the cryptocurrency industry and addressing regulatory challenges.
Coinbase Reports Decline in Transaction Revenue
In November, Coinbase reported a significant drop in its transaction revenue. The figure fell from approximately $655 million in the second quarter of 2022 to $366 million in the third quarter, marking a 44% decline. The reasons behind this decrease in revenue were not disclosed.
Overall, Coinbase’s decision to remove support for the four major tokens in its wallet reflects the company’s evaluation of user demand. However, it is important to note that this change does not impact the trading of these tokens on the Coinbase exchange itself. Additionally, Coinbase’s involvement in legal actions and the decline in transaction revenue highlight the challenges and complexities faced by the cryptocurrency industry.
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