The cryptocurrency exchange Coinbase has warned that, in light of its “recent reviews,” it is preparing to stop supporting six cryptocurrencies developed on the Ethereum network.
The US-based cryptocurrency trading company claims that this action is part of its routine inspection of the digital assets listed on its exchange to make sure they adhere to its listing standards.
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on recent reviews, we will suspend trading for Rally (RLY), DFI Money (YFII), Mirror (MIR), OMG Network (OMG), Loom Network (LOOM), & Augur (REP) on March 29, 2023.
— Coinbase Assets (@CoinbaseAssets) March 15, 2023
The affected cryptocurrencies are Rally (RLY), DFI Money (YFII), Mirror (MIR), OMG Network (OMG), Loom Network (LOOM), and Augur (REP), and all of them will stop trading on March 29, 2023.
Coinbase Exchange further noted that the assets will be suspended on the entire trading platform, including “Simple and Advanced Trade,” Coinbase Pro, Coinbase Exchange, and Coinbase Prime, on or around 12 p.m. ET. Moreover, it guarantees users that their funds will still be available to them and that they will still be able to withdraw them whenever they want.
Coinbase Gives No Clear Reasons for Delisting the Altcoins
Although there aren’t any clear explanations for why the coins will be removed, the United States crypto behemoth insists that it constantly undertakes legal, compliance, and technological security inspections while listing new assets and periodically assesses altcoins that have already been accepted to make sure they still adhere to its standards.
Recently, as reported by the Crypto Economy, Coinbase revealed plans to suspend trading for the world’s third-largest stablecoin by market share, Binance USD (BUSD), on March 13, 2023. This was in response to Paxos receiving a directive from the New York State Department of Financial Services to cease coin issuance.
Moreover, the crypto community has responded in a number of ways to Coinbase’s usual outright delisting of cryptocurrency assets from its trading platforms.
While some users are requesting further explanations regarding their purported “listing standards,” others believe that the coins that were just delisted are “dead projects” with negligible trading volume and that they likely cost the crypto exchange more in maintenance fees than they are worth.
Some other commenters further indicate that Coinbase takes into account criteria such as smart contract standards, compliance with relevant regulatory standards, and any suspicious activity on the part of those projects or their creators.
Regarding trading volumes, a user noted that certain other coins that are still available on the exchange had a lower trade volume than those that were delisted, suggesting that might not necessarily be a factor.
Data from Coinmarketcap also reveals that Rally (RLY), OMG Network (OMG), and Loom Network (LOOM), which are among the assets affected by Coinbase’s most recent action, had a respective 24-hour trading volume of $6,379,650, $37,245,940, and $101,789,884 at press time. These values are significantly higher than the grounds for delisting them.