Coinbase, the largest cryptocurrency exchange in the United States, recently made a significant announcement, declaring its intention to discontinue support for Bitcoin SV (BSV) on its platform.
This move marks the culmination of a process that began over two years ago when Coinbase initially delisted BSV from its trading options.
Coinbase Sets Deadline for BSV Withdrawals
As per the official announcement, Coinbase will halt its support for the BSV asset in the early months of the upcoming year. Users are strongly encouraged to take action before January 9, 2024, in order to secure their BSV holdings.
The announcement made it clear, stating, “Users are able to withdraw BSV funds until support for the asset is deprecated on January 9, 2024, at or around 12 p.m. ET. If you fail to withdraw your BSV funds, Coinbase will liquidate any remaining BSV remaining in your Coinbase account.”
Coinbase also advised that the liquidated funds would be converted into the cash equivalent market value of another digital asset, accompanied by a caution regarding potential tax liabilities associated with such transactions.
Coinbase’s decision to withdraw support for BSV was not entirely unexpected, given its previous delisting of the asset in 2021. The removal of BSV from its trading offerings was motivated by concerns regarding the stability of the blockchain, particularly in light of a “51% attack” that the network had experienced. Despite the delisting, Coinbase allowed users to keep their BSV holdings in their wallets on the platform.
Following the public announcement of Coinbase’s decision, the value of BSV experienced a slight decline, slipping below the $50 mark.
The Origins of Bitcoin SV (BSV)
Bitcoin SV, often referred to as Satoshi’s Vision, emerged in November 2018 as a result of a hard fork from Bitcoin Cash, a spin-off of the original Bitcoin blockchain. Currently occupying the 53rd spot in the digital asset rankings, with a market capitalization of $967 million, according to data from CoinGecko, Bitcoin SV has a unique and somewhat controversial history.
Developers of the cryptocurrency assert that BSV is the “original Bitcoin,” with “SV” representing “Satoshi’s Vision.” Hard forks, such as the one that led to the creation of BSV, can occur due to upgrades or disagreements among network developers. The world of cryptocurrency has witnessed numerous Bitcoin forks, but BSV stands out as one of the most prominent and well-known alternatives.
Notably, Bitcoin SV has received support from Australian computer scientist Craig Wright, who has made unverified claims of being Satoshi Nakamoto, the pseudonymous creator of Bitcoin. Wright’s assertive actions, including legal actions against exchanges like Coinbase and Kraken that questioned his identity, have played a role in the delisting of BSV on various platforms.
