The social trading platform eToro announced that it would remove Cardano (ADA) and TRON (TRX) from their platform due to “business-related considerations in the constantly changing regulatory environment”. Removal from the list will affect users of the platform in the United States.
Cardano (ADA) to Be Delisted from eToro
According to the platform announcement on November 23, the delisting is to take place gradually and fully at the beginning of next year. As of December 26th, US users will no longer be able to open new jobs. The pledge premiums for these two cryptocurrencies will also end on December 31, and the final premium spending will be on January 15, 2022. eToro is one of the first platforms to go public on listing Cardano and listed it in 2018.
The reaction of market participants to the news was mixed. For an “Invest_answers” observer, this news is a blow to Cardano as it will create more selling pressure in the market for ADA and thereby depress prices.
However, some market participants believe the opposite is true as the report is only expected to cause FUD. A Twitter user, Gaston Chanseaud, believes the delisting is more related to eToro’s commitment to ADA and TRX than the tokens being American securities.
Charles Hoskinson Reaction to the Delisting of ADA
Charles Hoskinson, director of development at Cardano and founder of the network, appears to agree with Gaston Chanseaud view. In a quick response to the news, Hoskinson announced that a regulatory incident in Cardano cannot guarantee eToro’s actions.
He stated that so far, no messages have been received. There is no regulatory incident, no subpoenas, no news from a regulator, no threat of litigation, none of the above.
However, he believes that as an independent company, the trading platform is adjusting its risk control policy, thereby reducing Cardano’s liquidity.
The CEO of IOHK further pointed out that the regulation of cryptocurrencies at the global level is still characterized by uncertainty from one country to another. He sees laws to clarify the situation as a permanent solution.
At the same time, the cryptocurrency won another big victory on the same day, Bitstamp cryptocurrency exchange supports ADA transfer and is expected to start trading tomorrow.
For Hoskinson, the Bitstamp listing was a victory in many ways. On the one hand, Bitstamp respects is one of the oldest cryptocurrency exchanges and the exchange was used to trade Bitcoin in the early days. Bitstamp, on the other hand, listed Cardano as an invalidation issued by FUD that could be caused by eToro’s actions. He added that Bitstamp has more liquidity on the exchange than eToro.