Coinbase to Cease Bitcoin SV Support, Urges Withdrawal or Face Liquidation

The post Coinbase to Cease Bitcoin SV Support, Urges Withdrawal or Face Liquidation appeared first on Coinpedia Fintech News

In a move that signifies another blow to Bitcoin SV (BSV), Coinbase, the renowned cryptocurrency exchange, has emailed its users that it will end all support for BSV by January 9, 2024. Users with BSV in their Coinbase accounts are instructed to transfer their holdings off the platform. Any remaining BSV after the deadline will be subject to liquidation by the exchange.

Coinbase’s decision to stop supporting BSV comes after the exchange delisted the token back in 2021. The company is now taking the final step to remove BSV from its platform, citing the need for users to act promptly to safeguard their investments.

The Fate of BSV Holdings

Coinbase’s recent alert to its users outlines the urgent action required: withdraw BSV holdings via on-chain or off-chain sends. Failure to do so by the deadline means Coinbase will liquidate BSV holdings, potentially impacting users’ control over their eventual cash-out value.

Bitcoin SV, a fork of Bitcoin Cash, which is itself a fork of Bitcoin (BTC), was created to stay true to what its proponents call “Satoshi’s Vision.” This is about the original intent of Bitcoin’s pseudonymous creator, Satoshi Nakamoto. BSV has faced significant controversy, primarily due to its association with Craig Wright, who has claimed to be Nakamoto – a claim met with widespread skepticism and challenge within the crypto community.

The Ripple Effects of Delisting

Since its inception, BSV has been a contentious token in the crypto space. Multiple exchanges, including giants like Binance, have delisted BSV in the past. Changpeng Zhao, CEO of Binance, famously called Wright a fraud and removed BSV from trading on his platform. This sentiment has rippled across the industry, leading to a decrease in BSV’s trading volume and market presence.

BSV suffered multiple 51% attacks in 2021, where attackers gained most of the network’s hash rate, enabling them to alter the blockchain’s transaction history. These attacks highlighted the vulnerabilities of BSV’s network and further eroded investor confidence.

Following the announcement, BSV saw a modest decrease in value, slipping by 1.74%. While not a drastic drop, it reflects the diminished trading activity and market attention to BSV, which currently has a daily trading volume of around $29.5 million and a market capitalization of $945 million.

Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation (HRF), reacted to the news with a brief tweet bidding farewell to BSV on Coinbase. 

Meanwhile, Coinbase Support has been actively guiding users through withdrawing their BSV, stressing the importance of users managing their funds before the removal takes effect.

Coinbase’s decision to end support for Bitcoin SV marks a significant moment in the cryptocurrency space’s ongoing evolution and its stand on maintaining network integrity and trust. As the January 9 deadline approaches, users and investors in the BSV community are facing a critical moment to decide the fate of their holdings.

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[Source: Coinpedia]