Coinbase Is Removing Support For Bitcoin SV, Warns Holders To Withdraw Or Risk Getting Liquidated

Coinbase Global Inc COIN, the largest cryptocurrency exchange in the United States, has announced that it will be completely removing support for Bitcoin SV BSV/USD.

What Happened: In a notice to its customers, Coinbase stated that if users fail to withdraw their BSV funds, any remaining BSV in their Coinbase accounts will be liquidated.

Coinbase confirmed to Decrypt, a cryptocurrency news outlet, that support for BSV is being deprecated. "If you fail to withdraw your BSV funds, Coinbase will liquidate any remaining BSV remaining in your Coinbase account," the notice said.

Bitcoin SV is a cryptocurrency that emerged in November 2018 as a result of a hard fork from Bitcoin Cash, another spin-off of the original Bitcoin. Hard forks occur when a blockchain splits into two, either as a planned upgrade or due to disagreements among developers, leading to a forced division.

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Why It Matters: With numerous Bitcoin forks and a multitude of alternative Bitcoins now in existence, BSV has garnered attention as one of the largest and most well-known. This is partly due to its main proponent, the Australian computer scientist Craig Wright, who claims to be the pseudonymous creator of Bitcoin BTC/USD, Satoshi Nakamoto. Supporters of BSV refer to it as “the original Bitcoin,” but it remains a contentious cryptocurrency and has been delisted from several major exchanges.

Wright’s threats of lawsuits were cited by Kraken as one of the reasons to delist BSV years ago.

As of now, BSV ranks 53rd among digital assets, with a market cap of $967 million according to CoinMarketCap, a cryptocurrency market data platform.

Coinbase’s decision to delist BSV came in 2021 after the coin’s underlying blockchain suffered a “51% attack,” causing the network to become unstable. Since then, Coinbase users have been unable to buy or sell BSV, although they can still hold the cryptocurrency in their wallets on the platform.

Wright in 2022  initiated legal action against cryptocurrency exchanges Kraken and Coinbase, alleging that these exchanges engaged in “misrepresentation” by referring to BTC as Bitcoin Core.

Photo by rafapress on Shutterstock

Price Action: At the time of writing, BSV was trading at $48, down 1.89% in the last 24 hours, according to Benzinga Pro.

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