In a surprising move, US-based cryptocurrency exchange Coinbase has announced that it will suspend trading of six major cryptocurrencies from its platform.
This decision comes after the exchange conducted a routine internal review in March, which led to the conclusion that these cryptocurrencies no longer meet Coinbase's listing criteria.
The six cryptocurrencies affected by the suspension and trading halt are:
Rally
DFI Money (YFII)
Mirror (MIR)
OMG Network
Loom Network (LOOM)
August (REP).
Coinbase’s statement regarding the moratorium:
In a tweet, Coinbase stated that it periodically monitors cryptocurrencies on the platform to ensure that they meet their listing criteria.
Coinbase then concluded that these six cryptocurrencies no longer meet its criteria and will be suspended from trading across all levels of trading, including basic and advanced, and across all platforms, including:
Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
Customers will still have access to their deposited funds and will be able to make withdrawals whenever they choose.
While the final suspension will take effect on March 29, 2023, giving clients ample time to make alternative arrangements for their investments.
The price of the written off cryptocurrency was affected:
As expected, the announcement of the suspension of trading in these cryptocurrencies had a significant impact on their prices.
Within minutes of the announcement, Augur's market capitalization, which is $91 million, saw a sharp drop of 5% and is currently trading at $8.2.
DFI Money and OMG Network also suffered a similar decline.
Coinbase did not provide specific reasons for suspending these cryptocurrencies.
However, it is common for exchanges to periodically review the cryptocurrencies listed on their platform to ensure that they meet certain criteria.
These criteria may include factors such as cryptocurrency liquidity, security, and regulatory compliance.
It is possible that one or more of these factors contributed to the suspension of the six cryptocurrencies on Coinbase.
What does this mean for investors of these cryptocurrencies?
The suspension of trading of these six cryptocurrencies on Coinbase is undoubtedly a blow to the cryptocurrency investors who own these assets.
Coinbase is a popular platform for buying, selling and trading cryptocurrencies, and suspending trading of these six cryptocurrencies may make it more difficult for investors to trade them.
It should be noted that there are other platforms where these cryptocurrencies can still be traded, and investors may consider exploring these options.
This incident underscores the importance of diversification in cryptocurrency investments.
As with any investment, diversifying a portfolio of cryptocurrencies can help reduce the risk of losing your investment due to a single event, such as the suspension of trading a particular cryptocurrency on one platform.
Investors should consider spreading their cryptocurrency investments across multiple platforms and a variety of cryptocurrencies to ensure that their investment remains protected.
