Coinbase Wallet, the self-custody crypto wallet from the major cryptocurrency exchange Coinbase, has announced the delisting of four significant cryptocurrencies: Ripple (XRP), Bitcoin Cash (BCH), Ethereum Classic (ETC), and Stellar (XLM). Starting January 2023, users will no longer be able to buy, sell, send, or receive these assets through the wallet application.
What Led to the Delisting Decision?
According to an official help page published by Coinbase on November 29, the decision was motivated by "low usage" of these assets within the wallet ecosystem. While these cryptocurrencies remain tradable on the main Coinbase exchange, their availability within the non-custodial wallet service is being discontinued.
It is important to note that this change does not affect the Coinbase exchange platform, where trading for these assets may still be available depending on user location and regulatory conditions.
Will Users Lose Their Funds?
Coinbase has clarified that users' existing holdings of these assets will not be lost. The company stated: "This does not mean your assets will be lost. Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase."
However, the company issued an important warning: attempting to send or receive these unsupported assets through Coinbase Wallet after the January 2023 deadline may result in permanent loss of those funds. Users are advised to manage these assets through alternative wallet solutions that continue to support them.
Historical Context of Coinbase Delistings
This is not Coinbase's first significant delisting action. In January 2021, the exchange suspended XRP trading services amid an ongoing investigation by the United States Securities and Exchange Commission (SEC) into Ripple Labs. The regulatory scrutiny surrounding XRP has been a significant factor in various platforms' decisions regarding its support.
The cryptocurrency industry frequently sees assets added and removed from platforms based on regulatory developments, trading volume, user demand, and technical considerations. These changes reflect the evolving nature of the digital asset landscape.
Recent Coinbase Developments
In late November 2022, Coinbase CEO Brian Armstrong revealed that the exchange holds approximately 2 million Bitcoin (BTC), valued at around $40 billion at the time of announcement. This disclosure highlighted the exchange's significant role in the cryptocurrency ecosystem as a major custodian of digital assets.
Earlier in November, Coinbase experienced network connectivity issues that the company attributed to "the high level of new user sign-ups and transfers to Coinbase" following the collapse of FTX. The platform assured users that these technical problems were promptly resolved and that user funds remained secure throughout the incident.
Managing Your Crypto Portfolio Through Changes
When exchanges and wallet providers make changes to supported assets, users should take proactive steps to ensure the security and accessibility of their holdings. This includes keeping recovery phrases secure, researching alternative wallet options, and staying informed about industry developments.
For those affected by this delisting, several alternative wallet solutions continue to support XRP, BCH, ETC, and XLM. Always ensure you're using reputable services and following security best practices when managing digital assets. 👉 Explore secure wallet alternatives
Frequently Asked Questions
What happens to my XRP holdings in Coinbase Wallet after January 2023?
Your XRP will remain on the blockchain and accessible through your recovery phrase, but you won't be able to manage it through the Coinbase Wallet interface. You'll need to use a different wallet application that supports XRP to transfer or manage these assets.
Can I still trade these cryptocurrencies on Coinbase exchange?
Yes, the delisting only affects Coinbase Wallet, not the main Coinbase exchange platform. However, availability on the exchange may vary by region due to regulatory considerations, particularly for XRP.
Why is Coinbase removing support for these specific cryptocurrencies?
Coinbase cited "low usage" as the primary reason. The company regularly evaluates which assets to support based on user demand, trading volume, regulatory compliance, and technical considerations.
How do I safely move my assets from Coinbase Wallet?
First, identify a compatible wallet that supports the specific cryptocurrencies you hold. Then, using your recovery phrase, import your wallet to the new application, or transfer the assets to a new wallet address through a supported network.
Will Coinbase delist more cryptocurrencies in the future?
It's possible, as cryptocurrency platforms regularly review their supported assets based on market conditions, user demand, and regulatory developments. Users should stay informed about official announcements from their service providers.
Are there fees associated with moving these assets to another wallet?
Yes, you will likely need to pay network transaction fees when transferring cryptocurrencies to different wallet addresses. These fees vary depending on blockchain network conditions at the time of transfer.