Why Coinbase Wallet Is Offering Four Cryptocurrencies Including Ripple
Coinbase has started taking drastic measures to make its business more efficient, especially during the ongoing downturn in the crypto market following the collapse of the FTX crypto exchange due to a lack of funds. In its latest announcement, the exchange said its wallet will no longer support four cryptocurrencies due to low usage. These altcoins are Bitcoin Cash (BCH), Ripple (XRP), Ethereum Classic (ETC), and Stellar Lumen (XLM). The Coinbase fund will end support for these altcoins on December 5, according to the company.
While XRP has a market cap of over $20 billion (approx. Rs. 1,64,880 crore), the individual values of BCH, XLM, and ETC hover over $2 billion (approx. Rs. 16,323 crore ) for each, data CoinMarketCap shown.
Coinbase, in an announcement sent on November 29, assured the owners of these altcoins that their assets will not be lost even after they are removed from the list of cryptocurrencies supported by its fund.
“Any unbacked assets you hold will still be tied to your address and accessible through your Coinbase Wallet recovery phrase,” the exchange, founded in 2012, noted in official update,
The Coinbase wallet first arrived as a mobile app in 2017. It only stores cryptocurrencies that are still supported by the exchange.
Starting next year, Coinbase users will not be able to buy, sell, send or receive these removed crypto assets through the wallet.
“In order to view or transfer these assets after January 2023, you will need to import your recovery phrase from another wallet provider that does not end up supporting these networks,” the company added.
Coinbase Wallet currently supports “thousands of tokens” including all ERC-20 tokens. Coins like USD Coin and DIA are also supported by the digital wallet.
Coinbase’s decision has grown into a topic of discussion in the crypto community, as messages about removed altcoins, especially Ripple, began to appear on Twitter.
That it could somehow be part of the plea deal against Ripple.
That coinbase will stop support for 4 networks (Bitcoin Cash, Ethereum Classic, Stellar and XRPL) in a non-maintained wallet as a result.
Why would you even try to make such a connection?!
– FloFlo (@Kneteknilch) October 29, 2022
Ops this is sad #The nose
Could it be their fault??
What will happen to its value this December???— 999#7525 (@TrxCoin9) October 29, 2022
Coinbase’s transaction revenue fell 44 percent in Q3 2022, and it managed to make $365.9 million (roughly Rs. 3,022 crore) in revenue.
This figure was almost doubled – to $655.2 million (about Rs. 5,400 crore) in the second half of 2022 between April and June.
The firm, headquartered in San Francisco, US has since taken many decisions to ensure that its users are not exposed to tokens, which may send financial threats, especially now that Coinbase is focused on international expansion.
The company recently hired senior executives to lead its teams in the Europe, Middle East, and Africa (EMEA) region.
