Coinbase just dropped some bad news for four cryptocurrencies. Do they know something we don’t?
On December 5, it is removing support for these digital assets on its Coinbase wallet, due to low usage.
The Crypto Market
Before I cover this news, I want to briefly discuss speculation and shitcoins (digital assets with no value).
There could be said to be several schools of thought in the digital asset space. From the growing “Bitcoin not crypto” crowd, to the speculating degens, to the “all crypto is a scam” group, you can see different perspectives, and not too much agreement.
However, I have found zero people who have disagreed with this statement.
There are too many tokens. There are too many shitcoins.
Briefly looking at these numbers, there are now 21,887 listed cryptocurrencies on CoinMarketCap.
In September 2022, per Chris Jones at CoinTelegraph there were 1,700 “dead tokens”.
Writer Josh Howarth noted that there were over 12,500 “dead cryptocurrencies” and 9,314 active ones per his November 2022 tally. A Bloomberg article from October 2022 pegged the number at 12,100.
This makes it very difficult for anyone building an honest product with this technology.
There will be many more tokens that go to zero as the bear market continues to take its toll. With less speculative money around, less are likely to be fooled by the latest moneygrab.
A History Lesson for the Intelligent Investor
As Benjamin Graham observed, and I am paraphrasing, peak speculation and stupidity occurs in bull markets. People who got lucky early in the early part of the bull market consider themselves to be good investors and are even more likely to make bad moves than newcomers.
It was this way in the 1920s, 1940s, 1960s, 1999/2000, 2006/2007 and 2020/2021 in the stock market. It was this was in crypto in the 2017/2018 and 2021 Bitcoin market peaks.
And now for the big news…
Coinbase Wallet Dumps 4 Digital Assets
Coinbase just dropped some bad news these four cryptocurrencies.
Due to low usage, on December 5, 2022 Coinbase Wallet will no longer be supporting Bitcoin Cash (BCH), Ethereum Classic (ETC), Stellar Lumens (XLM) and XRP.
This is not the same thing as the Coinbase exchange, which delisted XRP in 2020 after the SEC filed a lawsuit against Ripple. The exchange does support these other assets.
Performance of these assets over the past year:
ETC: -59.8%
XRP: -60.6%
XLM: -73.4%
BCH: -80.7%
Compared to Bitcoin, which is down 72.8% over the same time frame, ETC and XRP are some of the “best” performing digital assets over the past 12 months.
Does Coinbase know something we don’t know?
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This content is for educational purposes only. It does not constitute trading advice. Past performance does not indicate future results. Do not invest more than you can afford to lose. The author of this article may hold assets mentioned in the piece.
