Speculations Mount On Coinbase's Move To Remove XRP From Its Wallet Amid Ripple vs SEC Lawsuit

• Native tokens of Bitcoin Cash, Ethereum Classic, XRP Ledger, and Stellar will no longer be available on the Coinbase wallet.
• The Crypto community is speculating on the move and what it could mean in the ongoing SEC case against Ripple.

The US Cryptocurrency exchange Coinbase has announced that from January 2023, it will no longer support XRP, Bitcoin Cash (BCH), Ethereum Classic (ETC), and Stellar (XLM) due to low activity on the networks.

“As of January 2023, Coinbase Wallet will no longer be supporting the following assets and networks due to low usage: BCH, ETC, XLM, and XRP,” the exchange said in a Tuesday announcement.

Bitcoin Cash (BCH) was forked from the Bitcoin network’s code in 2017 as an alternative to the largest cryptocurrency (BTC). The token currently ranks #27 with a market valuation of more than $2 billion – according to data from CoinMarketCap. Similarly, Ethereum Classic is a fork of Ethereum that separated following a hack on the main network, while Stellar (XLM) is a decentralized P2P network and cryptocurrency for cross-border payments.

The exchange also noted that the delisted tokens held in the users’ accounts will remain and can be accessed through the Coinbase Wallet recovery phrase.

“To view or transfer these assets after January 2023, you will need to import your recovery phrase on another non-custodial wallet provider that supports these networks,” the company noted. It further cautioned users to “double check that Coinbase Wallet supports the network (they) are receiving assets from, otherwise (they) will not be able to access these assets.”

Speculations mount on Coinbase move amid the Ripple vs SEC case

The step by the exchange raised questions on the ongoing case pitting the XRP issuer, Ripple Labs, and the US Securities and Exchange Commission (SEC) on how it might turn out. Coinbase recently applied to be added to the case as “amicus” in support of Ripple, the defendant in the lawsuit.

In light of the actions taken by Coinbase, the cryptocurrency community is now speculating that the case against Ripple will either be delayed or go against the company.

Others have dismissed the move, claiming that the majority of XRP users are located in markets other than the United States.

Source: Read Full Article