From January 2023, the Coinbase wallet will no longer support XRP, BCH, ETC & XLM.
Coinbase stated that the decision was made owing to the low usage of the platform's assets.
Despite the bearish sentiment surrounding these tokens, all four gained in the morning trading session on Wednesday.
Disruptive events that have triggered the crypto winter. Several exchanges filed for bankruptcy, many others suspend withdrawals, and some delist a few coins, citing market instability as the reason.
As per recent reports, Coinbase announced that the Coinbase wallet would no longer support the assets and networks of Ripple (XRP), Bitcoin Cash (BCH), Ethereum Classic (ETC), and Stellar (XLM).
Coinbase also noted that the update — supposed to go into effect on December 5 — was due to low usage, but users will still be able to access their funds on this wallet using a recovery phrase.
However, if you recall, Coinbase previously announced its support for Ripple in its fight against the Securities and Exchange Commission (SEC). So, what actually promoted Coinbase to delist these coins? Why did Coinbase delist XRP?
Officials from Coinbase cited low usage as the basis for delisting the four coins, all of which rose to prominence during the 2017 crypto bull market. However, the delisting of these coins has had no impact on the coins' price, all are trading in bullish momentum.
Although, it is worth noting that XRP, 7th largest cryptocurrency by market cap, has been delisted. This has sparked uproar in the crypto community, with many wondering why it would delist XRP unless it had a strong belief that Ripple would fail to outperform the SEC. They believe it does not appear that XRP is performing well in court.
So, here comes a question in mind: will the sudden delisting of these four coins affect the users' funds, or has the exchange provided customers enough time to remove their funds from their wallets?
As per Coinbase's official announcement, support for these coins will be provided until December 5, after which sending or receiving unsupported assets using Coinbase Wallet will be risky.
The lack of support for the assets does not imply that user assets will be lost. In order to recover these unsupported assets, users will need to import their recovery phrase into another non-custodial wallet provider that supports these networks.
However, this is just the beginning of a prolonged crypto winter. Although, if we look at the previous crypto winters that lasted at least 2-3 years implies that there is much more on the menu for the crypto community this year.