Coinbase to Remove Bitcoin SV (BSV) from its Platform
Cryptocurrency exchange Coinbase has announced its plans to completely remove Bitcoin’s hard fork, Bitcoin SV (BSV), from its platform. The delisting of BSV occurred in 2021, and now Coinbase intends to liquidate the remaining BSV holdings in its wallets by January 2024.
Withdrawal Deadline and Liquidation Process
In an email sent to customers, Coinbase stated that it will cease support for BSV on January 9, 2024, at or around 12 p.m. ET. Users who fail to withdraw their BSV coins before the deadline will have them liquidated. The liquidation process involves converting the BSV to the equivalent market value of another supported digital asset and crediting it back to the user’s account, minus any transaction costs.
Potential Risks and Market Fluctuations
Coinbase highlighted that users who do not withdraw their BSV may not receive any compensation due to market fluctuations and transaction costs. This decision was made following a 51% attack on the Bitcoin SV network in August 2021, which was the fifth attack since June of that year. While BSV is still available for trading on other centralized exchanges like OKX and KuCoin, it lacks support for the U.S. dollar.
Avoiding Blockchain Attacks
A 51% attack occurs when a group of miners controls more than 50% of a blockchain’s hash power. Such attacks can be costly, with estimates suggesting that a one-hour attack against the Bitcoin network would cost around $1.3 million.
Hot Take: Coinbase Takes Strong Action Against Bitcoin SV (BSV)
Coinbase’s decision to remove and liquidate Bitcoin SV (BSV) from its platform demonstrates its commitment to ensuring the security and integrity of the cryptocurrencies it supports. By cutting ties with BSV following the series of attacks on its network, Coinbase aims to protect its users from potential risks and losses associated with market fluctuations. This move also sends a strong message to the crypto community about the importance of maintaining a secure blockchain ecosystem. As Coinbase takes this proactive stance, it sets a precedent for other exchanges to prioritize the safety and stability of cryptocurrencies on their platforms.
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