The Suspension of Tokens on Coinbase
The Coinbase crypto exchange has announced that it will halt trading for six tokens on September 6, affecting BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX). This decision is due to various issues faced by each token, including regulatory challenges.
Reasons Behind the Delistings
- Multichain (MULTI): Multichain has faced troubles such as the arrest of the founder’s sister and an exploit resulting in a loss of over $126 million.
- Ooki (OOKI): Ooki experienced legal woes and was ruled as an unlawful trading platform by a US judge.
- Voyager (VGX): Voyager faced allegations of being a security and concerns about compromised personal data.
- BarnBridge (BOND): BarnBridge is under scrutiny from the SEC, leading to a halt in product developments.
- DerivaDAO (DDX): DerivaDAO faced issues when the SEC labeled it as a security.
- Jupiter (JUP): Jupiter’s native token saw a significant drop amid regulatory scrutiny.
Are Crypto Exchanges Playing Safe?
This move by Coinbase has raised questions, especially considering their ongoing legal battle with the SEC. However, Wyoming Senator Cynthia Lummis has shown support for Coinbase, arguing that the SEC oversteps its boundaries in regulating crypto assets.
Hot Take
The delisting of tokens on Coinbase highlights the regulatory challenges faced by cryptocurrencies. It also sparks discussions about the role of exchanges in combating regulatory pressure and protecting investors.
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