Crypto exchange Coinbase announced that it will stop trading a total of six tokens on September 6th. The move affects BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI) and Voyager (VGX).
The platform noted that the suspension will happen across multiple platforms, including Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
What caused Coinbase to delist these tokens?
The reasons for these delistings vary, with each token facing unique problems. However, each token has been caught in the crossfire of regulators.
Multiple chain (MULTI):
Multichain has faced a myriad of issues following a dramatic series of events that included the arrest of the founder’s sister and subsequent closure of operations in July.
Binance recently withdrew its support for multiple bridge tokens from Multichain. Additionally, an exploit in July resulted in a loss of over $126 million. MULTI is down 1.5% on the daily charts after posting a sharp 75% drop over the past year.
OKI (OKI):
An Ethereum token designed to power the Ooki protocol ran into legal trouble in June after losing a lawsuit against the CFTC.
US Judge William H. Orrick ruled that Ooki DAO operated as an unlawful trading platform. The daily charts show a 3% drop, with the token’s value down 70% overall over the past year.
Voyager (VGX):
After Voyager filed for Chapter 11 bankruptcy last year, the company faced allegations from the SEC that VGX was a security. However, Voyager maintained that VGX was not a security.
VGX has dropped 8% in one day and a whopping 50% in the last year. Further concerns came after reports said personal data of former Voyager Digital customers was compromised.
Barn Bridge (BOND):
BarnBridge, known for its risk tokenization in decentralized finance, is under SEC surveillance. Douglas Park, legal counsel for BarnBridge DAO, announced in July that the organization and its subsidiaries are under investigation.
This investigation resulted in a halt to product development, including the closure of liquidity pools. BOND is down almost 6% on the daily chart and is trading around $2.40.
DerivativeDAO (DDX):
DerivaDAO, a decentralized derivatives exchange, faced problems when the SEC classified DDX under the securities umbrella. It was an insider trading case against a former Coinbase employee.
The token is currently in a downtrend, down 26% on the daily charts and priced below $0.20.
Jupiter (JUP):
Jupiter is a blockchain that uses “military-grade encryption” to power dApps like Metis Messenger. Its native JUP token fell 21% to $0.0034 on the daily chart due to regulatory controls.
Jupiter (JUP) price chart. Source: CoinMarketCap
Are crypto exchanges trying to play it safe?
This latest action by Coinbase is causing quite a stir given the current legal battle with the SEC. Coinbase has attempted to dismiss the SEC’s lawsuit, arguing that the exchange does not trade in securities. This defense comes amid similar legal action by the SEC against Binance.
However, Wyoming Senator Cynthia Lummis recently took action to show her support for Coinbase. She filed an amicus brief supporting the exchange’s motion to dismiss the SEC’s complaint.
BeInCrypto reported that Senator Lummis claims that the SEC cannot regulate or classify crypto assets. She emphasized that the regulator in the crypto space is overstepping its bounds.
Disclaimer
In accordance with Trust Project policies, BeInCrypto is committed to unbiased and transparent reporting. The goal of this news article is to provide accurate and timely information. However, readers are encouraged to independently verify the facts and consult a professional before making any decisions based on this content.
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