There is a fair amount of confusion on the internet over one of Kucoin’s recent decisions. The company has made it clear they will be dropping Bitcoin Cash-based trading pairs very soon. Contrary to what people may think, the exchange will not remove Bitcoin Cash itself, but rather get rid of some smaller trading markets which do not generate a sufficient amount of volume as of right now.
Kucoin’s Bitcoin Cash Decision
Kucoin will continue to support Bitcoin Cash for quite some time to come. This popular altcoin generates a lot of trading volume and is quite popular among exchange users in general. So much even that Kucoin has opened various alternative trading markets linked to BCH, including some for smaller altcoins.
Unfortunately, it appears that decision has not worked out exactly as planned. The company has now made it clear they will remove all of these BCH trading pairs in the near future, mainly because they simply don’t generate sufficient trading volume. This decision doesn’t just apply to Bitcoin Cash markets, mind you. DENT has lost quite a few trading pairs on the exchange, as have KCS, FOTA, and NEO. It seems offering dozens of markets will only go well for so long, as there can never be sufficient liquidity to keep all of these markets going. It is the way things go in the cryptocurrency industry, as there is no real need for too many trading markets.
For Bitcoin Cash supporters, very little will change in the end. Although they can no longer exchange BCH for a few small altcoins and assets, the main trading pairs will remain active for the foreseeable future. It is evident Kucoin had high hopes for these BCH trading markets, but it seems the altcoin is not popular enough – on this platform, anyway – to warrant being a “reserve currency” for other trading pairs right now.
Whether or not this will lead to any specific developments in the Bitcoin Cash industry remains to be seen. As it doesn’t affect the overall Bitcoin Cash price or value whatsoever, it remains to be seen if this decision by KuCoin was the right one. Although we commend the company for getting rid of obsolete markets, some users may not necessarily be happy with this development.
All of this raises the question as to which currency can rival Bitcoin in terms of being a reserve currency for altcoin and digital token trading. As of right now, it seems Bitcoin Cash may not fit the bill.