July 16, 2024

What you should do with any Bitcoin Cash, XRP, or EC coins you may have on Coinbase

For reasons of “low use,” Coinbase has decided to end support for these digital currencies as of January 2023. Coinbase, the largest cryptocurrency exchange in the United States, has announced that it will no longer facilitate the purchase of XRP, Bitcoin Cash, and Ethereum Classic.

Coin holders need to make a decision about their holdings by the end of the month. It is not unusual for coins that are rarely used to be removed from a wallet or exchange. A lawsuit against the SEC was just filed by the company. The Ripple founders allegedly profited from “an unregistered, ongoing digital asset securities offering,” according to the SEC. This allowed the company to raise over $1.3 billion.

Both Bitcoin Cash and Ethereum Classic experienced what are known as “hard splits” at roughly the same time. Blockchains can be broken down into two broad classes. Origin Protocol is responsible for the stable token OriginDollar and the NFT platform Origin Story. Origin Protocol founder Josh Fraser claims that a hard fork occurs when the coin’s community has conflicting visions for the future of the blockchain.

According to him, the cryptocurrency community is deeply divided, with some members supporting one direction for the blockchain and others advocating for the opposite. Those who had previously held a pair of coins now have only half their previous value.

It has been speculated by commodity.com that after a hard fork, one coin may gain more traction and value than the other. Fraser thinks Coinbase froze the accounts this week because of these concerns.

A stock or other asset may be delisted if it is not liquid enough to warrant keeping it on the exchange’s trading list and its trading volume is too low to justify the costs of keeping it there. Coinbase makes it simple to use a wide variety of cryptocurrencies. The processes of listing and delisting follow well-established protocols. Fraser claims that consumer demand, security, and law enforcement all play a role.

Funds in your delisted Coinbase wallet this week will not be lost.Customers can rest assured that their unsupported assets will still be linked to their Coinbase Wallet recovery password and accessible via their address.

Customers “will need to import their recovery phrase into another non-custodial wallet provider that supports these networks” to access or transfer assets stored on Coinbase after January 2023, the company said. Reeve Collins, CEO of SmartMedia Technologies and co-founder of Tether, recently gave an interview in which he assured investors that their cryptocurrency holdings would be secure in the new year.

Collins emphasised the significance of not assuming something is safe simply because its name isn’t mentioned. Until you request a withdrawal, Coinbase will store your cryptocurrency. Collins emphasised that even if the assets are secure, leaving them on Coinbase after they have been delisted may not be the best decision. Put simply, he likened it to “putting money in a bank vault.” Before you can buy, sell, or trade them, you must first remove them from Coinbase.

The Bitcoin ecosystem, fortunately, provides a number of safe ways to store and use all three coins over time.

Cryptocurrency holders have the option of selling, transferring, or cold-storing their XRP, Bitcoin Cash, or Ethereum Classic.

The phrase “not your keys, not your coins” is commonly used by those who specialise in cryptocurrency. One of the golden rules of cryptography is that you should never give away your coins. The responsibility for the safety of your cryptocurrency holdings on an exchange lies entirely with the exchange itself. It is now abundantly clear that promises are not always kept, as evidenced by the recent FTX exchange failure.

The first step after Coinbase’s delisting, as both Collins and Fraser see it, is to transfer cryptocurrency holdings to a new wallet.

In the case of Ledger, all three of these digital currencies are accepted. It’s “all you need” for Fraser, according to him, to have a ledger. Crypto enthusiasts are aware that Coinbase isn’t the only place to buy and sell bitcoins. Users who have XRP, Bitcoin Cash, or Ethereum Classic on Coinbase can move those coins to another exchange once Coinbase delists them.

Hundreds of transactions were made. Fraser noted that many different currencies are in use throughout the world. It’s true that Coinbase has a higher profile in the United States, but Binance is far and away the most visited cryptocurrency exchange online.

If you want to trade XRP, Bitcoin Cash, or Ethereum Classic, you should make sure the exchange you’re thinking about using supports those currencies before you deposit any funds. According to Fraser and Collins, there are many debates that back up all three claims. XRP, Bitcoin Cash, and Ethereum Classic are just some of the tradable digital assets. Fraser claims that the act of selling itself is a taxable occurrence.

For tax purposes, selling a home is not without cost, as Fraser points out. If you withdraw a sizable sum of Bitcoin Cash right now, keep in mind that you may be subject to taxation. The opposite is true for cryptocurrency wallets and exchanges: adding or removing funds from these accounts does not constitute taxable activity.

Fraser and Collins both think there is value in the three delisted coins. The decision made by Coinbase does not alter this fact. Listen to me when I say that everything will work out. While Coinbase’s user base is enormous, other options exist.

It is said that the coins’ value is set by the market. Fraser assured the public that the coins would continue to exist even if Coinbase stopped supporting them. The number of people who have put their faith in these coins likely numbers in the tens of thousands.

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