The Coinbase crypto exchange announced that it will halt trading for a total of six tokens on September 6. The move affects BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX).
The platform noted that the suspension will occur across multiple platforms, including Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
What Led to Coinbase Cutting These Tokens?
The reasons behind these delistings vary, with each token facing unique issues. However, every token has come amid regulatory crossfire.
Multichain (MULTI):
Multichain has been facing myriad troubles after a dramatic series of events that included the arrest of the founder’s sister and the subsequent shutdown of operations in July.
Binance withdrew its backing for several of Multichain’s bridge tokens recently. Additionally, an exploit in July resulted in a loss of over $126 million. MULTI has dropped by 1.5% on daily charts after a steep 75% decline over the past year.
Read more: 7 Best Binance Alternatives in 2023
Ooki (OOKI):
An Ethereum token designed to drive the Ooki Protocol experienced legal woes in June following a lawsuit loss against the CFTC.
US Judge William H. Orrick ruled that Ooki DAO functioned as an unlawful trading platform. The daily charts show a 3% dip with an overall 70% drop in the token’s value over the past year.
Voyager (VGX):
Following Voyager’s filing for Chapter 11 bankruptcy last year, it faced allegations from the SEC about VGX being a security. However, Voyager asserted that VGX is not a security.
VGX has suffered an 8% decrease within a day and a staggering 50% over the last year. Further concerns arose after reports claimed that personal data from Voyager Digital’s former clients was compromised.
BarnBridge (BOND):
BarnBridge, known for its risk tokenization in decentralized finance, is under scrutiny from the SEC. Douglas Park, legal counsel for BarnBridge DAO, disclosed in July that the organization and its affiliates were being investigated.
This probe led to a halt in its product developments, including the shutdown of liquidity pools. BOND has dipped nearly 6% on daily charts, trading around $2.40.
DerivaDAO (DDX):
A decentralized exchange for derivatives, DerivaDAO faced issues when the SEC labeled DDX under the securities umbrella. It was following an insider trading case against a former Coinbase staffer.
The token is currently declining, with a 26% drop on daily charts, pricing it below $0.20.
Jupiter (JUP):
Jupiter is a blockchain that uses ‘military-grade encryption’ to power dApps like the Metis Messenger. Its native JUP token took a 21% fall to $0.0034 on its daily chart amid regulatory scrutiny.
Are Crypto Exchanges Trying to Playing Safe?
This recent action by Coinbase raises eyebrows, given the current legal battle with the SEC. Coinbase has attempted to quash the SEC’s lawsuit, arguing that the exchange does not deal in securities. This defense emerges amid the SEC’s similar legal actions against Binance.
Revisit our guide on Coinbase IPO here: Coinbase IPO: What It Is and What It Means for the Industry
However, Wyoming Senator Cynthia Lummis has shown support for Coinbase in a recent action. She filed an amicus brief backing the exchange’s motion to dismiss the SEC’s complaint.
BeInCrypto reported that Senator Lummis contends that the SEC cannot regulate or classify crypto assets. She emphasized that the regulator is overstepping its boundaries in the crypto domain.
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