Coinbase Announces Delisting of Six Altcoins Built on Ethereum
Coinbase, a leading US-based crypto trading platform, has alerted its users that it plans to end support for six altcoins built on Ethereum.
The delisting is set to take place on Wednesday, March 29th, and will include Rally (RLY), DFI Money (YFII), Mirror (MIR), OMG Network (OMG), Loom Network (LOOM), and Augur (REP).
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on recent reviews, we will suspend trading for Rally (RLY), DFI Money (YFII), Mirror (MIR), OMG Network (OMG), Loom Network (LOOM), & Augur (REP) on March 29, 2023.
— Coinbase Assets (@CoinbaseAssets) March 15, 2023
Coinbase has stated that investors in these assets can still withdraw their funds indefinitely. However, the company has not provided a clear reason for removing these assets from its platform other than stating that it regularly monitors the assets on it’s exchange to ensure they meet listing standards.
In a blog post from May of 2021, Coinbase detailed the requirements that altcoins must meet to be listed on the platform. When listing new assets, the company routinely conducts legal, compliance, and technical security reviews. It also regularly reviews already accepted assets to ensure that they continue to meet its standards.
Specifically, Coinbase evaluates the level of centralization of a given coin, whether it has an actual use case, whether its code is secure and verifiable, and whether the team behind the project has made claims about whether the investment is an asset or a security.
Although the exchange has not explicitly explained why it is delisting these six altcoins, some industry experts speculate that it may be due to concerns about the lack of regulatory compliance, centralization, or lack of adoption for these particular assets. It’s worth noting that Coinbase has previously delisted other projects that didn’t meet its standards, such as XRP and Stellar Lumens.
Removing these six altcoins from the platform highlights the importance of meeting the platform’s listing standards for altcoin projects that hope to gain broader adoption and recognition within the crypto ecosystem.
As the industry continues to evolve and regulatory standards become more stringent, projects must ensure that they meet these standards if they hope to be listed on major exchanges like Coinbase.