Coinbase (NASDAQ:COIN), a top-tier U.S. cryptocurrency exchange, has announced it is discontinuing support for Bitcoin SV (BSV) by January 9, following a series of events that have stirred controversy around the digital asset. BSV assets stored in Coinbase wallets will be liquidated unless withdrawn by the deadline, marking the final phase of the exchange's distancing from the disputed cryptocurrency.
The decision follows a "51% attack" on the BSV blockchain in 2021 that caused network instability and led to its delisting from Coinbase. Although trading was suspended post-attack, customers were permitted to store BSV in their Coinbase wallets until now.
BSV, born from a hard fork of Bitcoin Cash in 2018, currently ranks as the 53rd largest digital asset with a market capitalization of $967 million. The cryptocurrency has been at the center of debates largely due to Craig Wright's claim to be Satoshi Nakamoto, Bitcoin's pseudonymous creator. Despite lacking substantial evidence and facing threats of lawsuits that led to its delisting from exchanges like Kraken, Wright remains an unwavering advocate for BSV.
Meanwhile, Bitmart, a global crypto exchange managed by GBM Global Holding Co. Ltd., continues to support BSV despite its contentious status. The company is presently engaged in a legal battle aiming to halt the transfer of BSV stolen in a July 9 hack. A U.S. District Court has granted Bitmart a preliminary injunction against the alleged hackers.
As exchanges continue to grapple with the challenges posed by contentious digital assets like BSV, market participants are reminded of the importance of thorough due diligence and risk assessment when engaging with cryptocurrencies.
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