2021-11-24 12:53 |
Social trading platform eToro announces delisting of Cardano (ADA) due to regulatory concerns.Charles Hoskinson clarifies that there is no regulatory event at Cardano to be bothered about. Almost simultaneously, Bitstamp has announced the listing of ADA with trading to go live tomorrow.
Social trading platform eToro has announced that it would be delisting Cardano (ADA) and TRON (TRX) from its platform due to “business-related considerations in the evolving regulatory environment.”
The delisting will affect the platform’s users based in the U.S. According to the platform’s announcement, the delisting will be carried out in phases that will be fully implemented by early next year. U.S. users will no longer be able to open new positions by December 26. Staking rewards for the two cryptocurrencies will also end by December 31, while final reward payouts will happen on January 15, 2022. eToro was notably one of the first platforms to list Cardano, having listed it back in 2018.
Market participants have been reacting to the announcement with mixed sentiments. For one observer, “Invest_answers,” the news is a hit to Cardano as it is going to create more selling pressure for ADA in the market, thus driving prices down.
However, some market participants think that the reverse is the case as the report is just expected to create FUD. A Twitter user, Gaston Chanseaud, opined that the delisting may have more to do with eToro’s offering of staking rewards for ADA and TRX rather than the coins being securities in the U.S.
Head of Cardano’s development arm and founder of the network, Charles Hoskinson, seems to share this opinion too. In a swift response to the news, Hoskinson revealed that eToro’s move could not have been warranted by any regulatory events at Cardano.
“There’s currently nothing received. No regulatory event, no subpoena, nothing from any regulatory agency, no threats of lawsuits, none of those things,” he said.
What he considers to be the case however is that the trading platform, which is an independent business, was adjusting its risk control policy and therefore clipping liquidity for Cardano.
The IOHK chief executive goes on to point out that globally, cryptocurrency regulation was still characterized by uncertainty from one country to the other. The permanent solution he sees to this is for laws to be made to clarify the situation.
Meanwhile, the cryptocurrency on the same day has recorded another major win. Today, cryptocurrency exchange Bitstamp is enabling transfers of ADA, with trading expected to go live tomorrow.
For Hoskinson, the listing on Bitstamp is a win on many fronts. For one, Bitstamp has his respect for being one of the longest-standing cryptocurrency exchanges and the exchange he used in his early days of trading Bitcoin. For another, Bitstamp listing Cardano is an invalidation of the FUD that is likely to be generated by eToro’s move. He also adds that Bitstamp has more liquidity than eToro among exchanges.
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