Coinbase warns Bitcoin SV holders to withdraw funds before liquidation
US popular cryptocurrency exchange Coinbase is urging users to withdraw their Bitcoin SV (BSV) holdings by January 9, warning that failure to do so will lead to the platform liquidating their BSV balances. This move follows a notice issued to Coinbase account holders concerning the removal of BSV support.
“If you fail to withdraw your BSV funds, Coinbase will liquidate any remaining BSV remaining in your Coinbase account,” the notice reads.
The cryptocurrency, associated with Craig Wright, who claims to be the real “Satoshi Nakamoto,” saw a modest drop of 1.74% on the back of this announcement. Trading volumes for BSV remain low, with a reported daily turnover of $29.5 million and a market cap hovering around $945 million.
BSV’s delisting from various crypto exchanges isn’t new; reasons span from Wright’s contentious behavior to the cryptocurrency’s vulnerability to security breaches, particularly the 51% attacks. These attacks disrupt the network’s integrity by giving attackers the power to override real blocks.
The disapproval of Wright’s claim as the Bitcoin creator by prominent figures like Binance CEO Changpeng Zhao led to BSV’s delisting from Binance in 2019, with Zhao dubbing Wright a fraud. Coinbase’s move adds to the challenges faced by Bitcoin SV in gaining and maintaining support within the crypto exchange ecosystem.
Coinbase ceased interactions with the Bitcoin SV in 2021 after a wave of fear washed through the BSV community following yet another 51% attack.
Double-spending attacks have become easier on Bitcoin SV due to the network’s known vulnerabilities, namely the limited number of nodes. Given this poor network security, BSV’s price lost more than 70% of its peak at $441 when it had its first halving. At the time, the event reduced its block rewards from 12.5 to 6.25 BSV, causing the hash rate to drop by 50% as many miners exited the network when the cryptocurrency’s price didn’t surge.
Bitcoin SV was forked out from Bitcoin Cash (BCH) in 2018, but it has been suffering from the same vulnerability that was identified in the latter as the zero-confirmation algorithm makes it vulnerable to this exploit.
