Coinbase has finalized its actions to phase out Bitcoin SV from its list of supported digital assets.
Initially rumored in November 2023, the delisting became official when Coinbase announced it had deprecated support for Bitcoin SV (BSV).
In a post on X, Coinbase advised users who still held BSV that their assets had been forcefully liquidated and converted into a different cryptocurrency available on the platform, albeit after the deduction of transaction costs.
We have deprecated support for Bitcoin SV (BSV). We appreciate your patience and cooperation. https://t.co/35AhSAerJt
— Coinbase Assets 🛡️📞 (@CoinbaseAssets) February 3, 2024
The exchange also notified customers that the involuntary conversion process might not result in compensation, especially if their BSV holdings were minimal, given that transaction fees and market volatility could erode the asset’s value entirely.
Coinbase further warned that after the deprecation date, it would remove the remaining fractions of BSV, and customers would be unable to withdraw them, essentially wiping away any trace of BSV from their portfolios.
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As reported by crypto.news, Coinbase had prepared users for this shift in November last year. The exchange sent customers an email advising them to transfer any BSV holdings to an external BSV-compatible wallet before a Jan. 9 deadline.
It also warned users that post-deadline, they would no longer see BSV in their portfolios, only the credited cryptocurrency reflecting the conversion, less the associated fees.
Notably, the exchange had also cautioned users about the potential for tax liabilities or other tax implications arising from the liquidation process, emphasizing that they bore sole responsibility for understanding and acting on their individual tax situations.
Originating from a split in the Bitcoin Cash (BCH) network in 2018, BSV’s history is marred by controversy, including security concerns and market volatility.
Its presence has been fading, as evidenced by its removal from other exchanges, including Robinhood. Additionally, recent upheavals involving a 51% attack in 2022 further destabilized BSV’s standing.
The cryptocurrency is currently 85% below its all-time high. However, despite the delisting announcement, it has registered a massive 102% increase in trading volume in the last 24 hours, accompanied by a modest 2.6% increase in its price over the same period.
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