In a recent announcement, major cryptocurrency exchange Coinbase revealed its decision to suspend trading for two digital assets, Metal DAO (MTL) and Enjin Coin (ENJ). This action affects all of Coinbase’s platforms, including Simple and Advanced Trade, Coinbase Exchange, Coinbase Prime, and Native DEX, thereby preventing users from trading these tokens on the exchange.

Despite the trading halt, users holding Metal DAO and Enjin Coin will still have access to their funds and the ability to withdraw their assets at any time. The decision to disable trading for Enjin Coin comes after a thorough review process by Coinbase, which regularly assesses the assets listed on its platform to ensure they meet its stringent listing standards. The trading suspension for Enjin Coin took effect on June 14, impacting all Coinbase trading platforms.

Coinbase’s decision to suspend Metal DAO trading is linked to recent developments within the Metal DAO project. On June 4, Metal DAO successfully passed a key proposal, MIP-00, which outlines its transition to Metal L2, a layer-2 solution operating on the Optimism Superchain. This transition involves migrating MTL tokens from the Ethereum mainnet to Metal L2 through an airdrop.

Coinbase has stated that it will not support this token airdrop. Consequently, trading for Metal DAO was halted on June 14 across all Coinbase platforms. Coinbase has advised holders of MTL tokens to transfer their assets to a self-custodial wallet that supports MTL V2 by June 23 to ensure they receive the airdropped assets. This advisory is crucial for MTL holders who wish to participate in the migration process and access their new tokens on Metal L2.

The announcement from Coinbase has had a noticeable impact on the market prices of both MTL and ENJ. In the 24 hours following the announcement, both tokens experienced significant price declines amid a broader market downturn. Enjin Coin saw a decrease of 3.21%, trading at $0.2196, while Metal DAO dropped by 4.31%, with a current price of $1.25.

For users of Coinbase, the suspension of trading for Metal DAO and Enjin Coin underscores the importance of staying informed about the assets listed on their chosen platforms. The decision also highlights the dynamic nature of the cryptocurrency market, where regulatory reviews and project developments can lead to significant changes in trading availability.

The broader crypto community will be closely watching how Metal DAO’s transition to Metal L2 unfolds, as it represents a significant move within the layer-2 scaling solutions space. This migration is expected to enhance the efficiency and scalability of Metal DAO’s ecosystem, providing users with faster and cheaper transactions.

Coinbase’s suspension of trading for Metal DAO and Enjin Coin is a noteworthy development in the cryptocurrency landscape. While users can still access and withdraw their funds, the halt in trading reflects ongoing efforts by exchanges like Coinbase to maintain high standards of compliance and security. As Metal DAO transitions to its new layer-2 solution, the crypto community will be keen to see how these changes impact the broader market and the adoption of innovative blockchain technologies.