Coinbase Set to Liquidate Remaining Bitcoin SV Holdings

The well-known cryptocurrency exchange Coinbase has said that it would be eliminating Bitcoin SV (BSV) entirely from its platform. This choice comes after BSV was delisted in 2021. Coinbase said in a recent email to its users that it would no longer offer BSV on January 9, 2024, at about 12 p.m. ET. Notably, the exchange also said that users will be liquidated if they do not remove their BSV coins before the deadline.

Implications of Liquidation

Coinbase will convert the BSV holdings to the comparable market value of another supported digital asset upon liquidation and credit the user’s account with the amount. Nevertheless, the deduction of any transaction charges will apply to this conversion.

The exchange stressed that because cryptocurrency values can fluctuate and incur transaction fees, those who do not withdraw their BSV by the deadline might not get payment equal to the market value. It is imperative that Coinbase users who own BSV act quickly to prevent such uncertainty.

The BSV network was the subject of a 51% assault in early August 2021, which led Coinbase to decide to delist BSV. Three different versions of the BSV chain were being mined concurrently as a result of this event, which was the sixth 51% attack on Bitcoin SV since the end of June 2021.

When a group of miners controls more than 50% of the hash power, or hash rate, within a blockchain network, this is referred to as a 51% attack. Serious repercussions might result from such an assault, including as the ability to alter the blockchain’s transaction history and double-spend money.

A one-hour assault on the Bitcoin network would cost almost $1.3 million, according to statistics from Crypto51, highlighting the serious security vulnerabilities connected with 51% attacks.

While Coinbase is taking the proactive step of removing BSV from its platform, it’s worth noting that BSV remains available for trading on other centralized exchanges, such as OKX and KuCoin. However, these exchanges do not offer support for the U.S. dollar, making Coinbase’s decision significant for those who prefer trading BSV within the U.S.