SBI exchange to drop Bitcoin Cash due to dwindling market cap
Japanese cryptocurrency exchange SBI Virtual Currencies is removing Bitcoin Cash (BCH) from its list of supported coins. The company explains in a press release (in pdf) dated today that it made the decision after watching BCH’s market cap continue to dwindle, which would ultimately make the blockchain susceptible to a 51% attack. According to the release, BCH will officially be removed at the end of this month.
In explaining the move in relation to the market cap, SBI asserts, “This material is not part of the rules for the management system of virtual currency related information of Japan Virtual Currency Exchange Business Association.”
It adds that any potential hard forks of BCH – of which there will be several – could have a negative impact on the exchange. A little of this was seen in last year’s BCH hard fork that saw the creation of BCHABC and the continuation of Bitcoin through Bitcoin SV (BSV).
Anyone holding BCH through SBI can sell their coins by the end of this month. By the end of May, any coins remaining will be delivered to a CooXWallet, which will act as a “customer-managed designated hardware wallet.”
All BCH transaction are now “suspended,” but custody sale transactions are still authorized. SBI will provide more details about the permanent removal of BCH later this month.
While SBI lays out the reasons for the delisting, some in the crypto community believe there is a darker, more nefarious reason. The announcement comes shortly after Binance announced that it would be delisting BSV over the assertion by Dr. Craig Wright, nChain’s Chief Scientist, that he is Satoshi Nakamoto. Because SBI and nChain have a tight relationship, some assert that SBI’s move is in retaliation to Binance’s decision.
The continued in-fighting that has been going on in the Bitcoin community, and the cyberbullying against Wright, are indications of the immaturity that is still prevalent in the crypto space. That immaturity was at the heart of the BCH hash wars last year and the crypto community is now witnessing the outcome of the continued childish behavior.