Coinfloor, UK’s oldest cryptocurrency exchange, announced that it would be delisting Ethereum and Bitcoin Cash next month. From January 3, 2020, only Bitcoin will be listed on Coinfloor.
Coinfloor delisted Ethereum because of the launch of Ethereum 2.0 planned for early 2020. The Ethereum 2.0 will be the first step in shifting from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism to reduce energy consumption in mining. This was necessitated because energy consumption in PoW is one of the major causes of pollution in the world.
Obi Nwosu, Founder and CEO of Coinfloor, believes the process of migrating from PoW to PoS consensus mechanism could take several years and hence, exchanges will have to accommodate two versions of Ethereum.
You have to maintain that currency (Ethereum) every time they make an update or a change, and Ethereum has a long way to go with updates and changes on the platform.
He further explained that Ethereum trading was a very small fraction of the overall volume of trading at Coinfloor. Hence, it was decided that the cost of accommodating Ethereum upgrades was not justified by its trading volume and it should be delisted.
In fact, several Ethereum developers are currently holding discussions on how to create a secure bridge between the PoW and PoS chains till the migration is complete.
Coinfloor is a small cryptocurrency exchange with a 24-hr trading volume of $450,000. Thus, it is understandable that it chose not to bear the cost of Ethereum trading on two chains instead of one. It had listed Ethereum for trading just last year after Ethereum had secured all regulatory clearances. The planned migration to PoS has forced Coinfloor to delist Ethereum after just one year.
Nwosu also said that Bitcoin Cash had fallen to accounting for one-tenth of the market cap from one-third in one year. The lack of user interest in Bitcoin Cash meant that Coinfloor had no option, but to delist it.