Coinbase Wallet to Drop Support for XRP, ETC, XLM, and BCH: What Crypto Users Need to Know

Are you a Coinbase Wallet user holding XRP, Ethereum Classic (ETC), Stellar Lumens (XLM), or Bitcoin Cash (BCH)? If so, you need to pay attention! Coinbase, a leading name in the crypto exchange world, has announced a significant change that will impact users of its self-custody wallet. Starting January 2023, Coinbase Wallet will no longer support these four cryptocurrencies. Let’s dive into what this means for you and what steps you should take.

Why is Coinbase Wallet Removing Support for These Cryptocurrencies?

According to Coinbase’s official announcement, the decision to discontinue support for ETC, BCH, XRP, and XLM is primarily due to “low usage.” In the fast-paced world of crypto, platforms constantly evaluate their offerings to focus on the most utilized and relevant assets. It seems that for Coinbase Wallet, these four cryptocurrencies didn’t make the cut in terms of user activity.

What Does This Mean for You as a Coinbase Wallet User?

Here’s a breakdown of what you need to know and what actions you should consider:

• Access to Assets Remains: The good news is that Coinbase assures users that you will still be able to access your ETC, BCH, XRP, and XLM assets even after the support ends. Your recovery phrase remains your key to accessing your funds on the blockchain.
• No More Coinbase Wallet Functionality: However, from January 2023 onwards, you will no longer be able to directly manage these cryptocurrencies within the Coinbase Wallet interface. This means:
  • No Sending or Receiving: You cannot send or receive ETC, BCH, XRP, or XLM directly through your Coinbase Wallet. Attempting to do so could result in the loss of your assets.
  • No Viewing Balances: Your Coinbase Wallet might not display the balances of these unsupported cryptocurrencies anymore.
• Action Required: If you intend to actively trade or manage these assets, you’ll need to move them to a different wallet or platform that supports them.

Understanding the Affected Cryptocurrencies

Let’s briefly look at each of the cryptocurrencies being delisted and why this news might be significant:

XRP

Despite the delisting news, XRP actually saw a price increase of 5% in the 24 hours leading up to Wednesday morning in Asia! Currently ranked as the seventh-largest cryptocurrency by market capitalization according to CoinMarketCap, XRP powers Ripple Labs’ payment network and has been a subject of much attention due to the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). The outcome of this lawsuit is closely watched and significantly impacts XRP’s price and sentiment.

Ethereum Classic (ETC) and Bitcoin Cash (BCH)

ETC and BCH are forks of the two giants, Ethereum and Bitcoin, respectively. Historically, they’ve experienced fluctuating interest and usage. ETC, in particular, saw a surge of interest leading up to the Ethereum Merge, but its value has since decreased significantly. Like XRP, these cryptocurrencies have dedicated communities but perhaps haven’t maintained the level of activity within Coinbase Wallet to justify continued support.

Stellar Lumens (XLM)

Stellar (XLM) is designed for fast and low-cost international money transfers. While it has its use cases and a strong technology foundation, its adoption and usage within Coinbase Wallet may have been lower compared to other supported assets, leading to this discontinuation.

What Should You Do If You Hold These Cryptocurrencies in Coinbase Wallet?

Here are some actionable steps you can take:

• Retrieve Your Recovery Phrase: Ensure you have your 12 or 24-word recovery phrase safely stored. This is crucial for accessing your assets outside of Coinbase Wallet.
• Choose a New Wallet: If you want to continue actively managing ETC, BCH, XRP, or XLM, research and choose a different wallet that supports these cryptocurrencies. Many reputable wallets are available, both custodial and non-custodial.
• Transfer Your Assets: Before the January deadline (and ideally sooner rather than later), transfer your ETC, BCH, XRP, or XLM from your Coinbase Wallet to your new chosen wallet. Ensure you double-check the receiving address to avoid any errors!
• Consider Exchange Options: If you prefer to trade these assets, you can explore other cryptocurrency exchanges that list them.
• Stay Informed: Keep an eye on announcements from Coinbase and the wider crypto community for any further updates or recommendations.

Key Takeaways

• Coinbase Wallet will discontinue support for XRP, ETC, XLM, and BCH in January 2023 due to low usage.
• Users retain access to their assets via their recovery phrase but will need to use a different wallet to manage them.
• It’s crucial to transfer your assets to a supported wallet if you wish to continue using these cryptocurrencies.
• This change highlights the dynamic nature of the cryptocurrency landscape and the importance of staying informed about platform updates.

This move by Coinbase Wallet serves as a reminder of the evolving nature of the crypto space. While it might be inconvenient for some users, it also reflects the platforms’ need to adapt and optimize their services. Make sure you take the necessary steps to manage your assets and continue your crypto journey smoothly!