The leading US-based cryptocurrency exchange has decided to terminate all trading services for five digital assets. The announcement resulted in substantial price declines for the affected tokens.
Interestingly, many users applauded the move, describing some of the scrapped coins as scams and rug pulls.
The Departing Ones
Coinbase regularly monitors the tokens listed on the platform to ensure they meet all necessary standards. Based on the recent reviews, the team decided to suspend trading for Clover Finance (CLV), EOS (EOS), League of Kingdoms Arena (LOKA), Muse Dao (MUSE), and Wrapped Centrifuge (WCFG). The delisting will happen on November 26, and the coins will be removed from the official website, Coinbase Exchange, and Coinbase Prime.
“We have moved our order books for these assets to limit-only mode. Limit orders can be placed and canceled, and matches may occur,” the company clarified.
Such actions are generally negative for the affected cryptocurrencies since they reduce their liquidity and accessibility and cause reputational damage. That said, it comes as no surprise that all of those are in red territory today (November 11).
Muse Dao (MUSE) took the biggest blow, crashing by 24% over the past 24 hours. LOKA retraced by 13%, WCFG slipped by 9%, whereas the rest witnessed less substantial losses.
Some X users commenting on the post congratulated Coinbase for its decision, suggesting it will help remove tokens with questionable use cases or those that have failed to meet expectations. The bashing manifest is primarily focused on EOS, which was labeled as a “rug pull,” and LOKA, described as “trash.”
The Opposite Effect
Contrary to delisting tokens that don’t meet certain criteria, Coinbase is always on the lookout to add new promising assets to its platform. In July, it placed BankrCoin (BNKR), Jito Staked SOL (JITOSOL), and Metaplex (MPLX) on its roadmap, which serves as a pre-listing stage.
Backing of that type usually acts like a price catalyst, and BNKR and MPLX soared by double digits. Surprisingly, JITOSOL did not benefit the same way and headed south after the disclosure.
A month ago, Coinbase made a somewhat surprising move by including BNB on its roadmap. This shocked some industry participants because BNB is the native token of the exchange’s biggest competitor, Binance, and it may lead to the endorsement of its rival’s ecosystem.
Nonetheless, Changpeng Zhao, the former CEO of Binance, saw nothing unusual. He reminded that Binance has listed several products part of Coinbase’s ecosystem over the years, urging its competitor to embrace even more BNB Chain projects.