Coinbase halts trading on a bunch of top altcoins
Coinbase is suspending the trading of several cryptocurrencies on its platform, citing a routine internal review was carried out by the US largest crypto exchange.
As of March 29, assets such as OMG Network (OMG), Augur (REP), Rally (RLY), Mirror (MIR), Loom Network (LOOM), and DFI Money (YFII) will no longer be available for trading on Coinbase. However, users will still have the option to withdraw their tokens.
The decision to delist these assets has sparked speculation within the cryptocurrency community about the reasons behind it. While it’s not clear whether the Security Exchange Commission (SEC) influenced the decision, Coinbase mentioned that the delisting aligns with its commitment to maintaining high-quality standards for the assets listed on its platform.
Additionally, Coinbase is set to delist BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX) on September 6, 2023. These coins will no longer have access to some of Coinbase’s core services, including trading on platforms like Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
While the crypto community is puzzled by Coinbase’s decision, wondering about the specific requirements that led to the delisting, the affected altcoins saw steep price drops following the announcement.
Coinbase CEO Brian Armstrong explained that the exchange’s delisting decisions are not about “picking winners and losers.” Instead, assets are evaluated based on compliance with the platform’s minimum listing standards, which include factors like security and legality. He acknowledged that the listing process might seem biased due to the complexity of assessing new assets.
“At Coinbase, our goal is to list every asset that is legal and safe to do so, so that our customers are protected but we also create a level playing field for all the new assets being created in crypto,” he added.
Armstrong pointed out that the listing process for ERC-20 tokens can be relatively swift due to their adherence to standard Ethereum guidelines, making them easier to evaluate and integrate from a technical standpoint. ERC-20 tokens are based on Ethereum’s framework and are designed to follow standardized rules.
On the other hand, tokens that operate on different blockchain networks can pose more technical complexities and challenges for integration. Armstrong noted that if the review and integration process for such tokens requires a lot of work, America’s largest crypto exchange might opt not to list them. This decision isn’t indicative of the tokens’ value or potential; rather, it reflects the practical considerations and resources required for successful integration.
