Due to "poor usage," Coinbase Wallet will no longer support BCH, ETC, XLM, and XRP.
by zhixian pan December 01, 2022
The crypto wallet plans to stop support for the four tokens on Dec. 5, but any remaining funds will still be tied to users' existing addresses.
Source: cointelegraph
Coinbase Wallet will no longer support four major tokens as of Dec. 5.
In a Nov. 29 notice on its help pages, Coinbase said the wallet will no longer support Bitcoin Cash , XRP , Ethereum Classic and Stellar Lumen , as well as their associated networks. The crypto firm cited "low usage" of the four tokens in its decision.
"This does not mean your assets will be lost," said the announcement. "Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase."
Source: Coinbase
The announcement specifically refers to Coinbase's app, Coinbase Wallet, and not the exchange itself delisting the tokens. The firm previously suspended trading for XRP in January 2021 in response to the United States Securities and Exchange Commission taking legal action against Ripple, a case that is still ongoing. It's unclear what led to its wallet app removing support for BCH, XLM and ETC.
Coinbase has backed a group of investors filing a lawsuit against the U.S. Department of Treasury over its Office of Foreign Asset Control's sanctions against crypto mixer Tornado Cash. The firm reported in November that its transaction revenue fell 44% from roughly $655 million in the second quarter of 2022 to $366 million in the third quarter.
Ethereum’s Shanghai upgrade, which allowed withdrawals from its proof-of-stake network starting in April, unleashed fresh demand to stake the second largest cryptocurrency. Staking lets crypto owners lock up tokens to participate in securing the network as a validator in exchange for a reward, making it a popular investment among long-term investors including institutional investors.
Some of the filing continues to reiterate Coinbase's already-live public statements, arguing that current SEC Chair Gary Gensler changed his position on the regulator's authority over crypto between taking office in April 2021 and mid-2022; saying the company has asked for regulation; and noting that Congress has started looking at the issue of crypto regulation.
Furthermore, it introduces the prospect of mandatory reimbursement for victims of Authorised Push Payment (APP) scams. APP scams have been a prevalent issue in the UK, with the bill targeting tighter controls on those who approve financial promotions for others, thereby bringing more accountability to the financial ecosystem.