- 1 Delisting announcement made ADA, SOL, and MATIC trading price shed up to 30%
- 2 Bitcoin (BTC) and Ethereum (ETH) are also trading in the red since last week.
The week was full of ups and downs—mostly downs—for the broader cryptocurrency industry. Two major cryptocurrency exchanges were charged for unregistered operation by the US securities regulator; several prominent crypto assets were called out as unregistered securities; and crypto exchanges reported shutting down operations in the US or delisting cryptocurrencies. Soon after all these developments, commission-free crypto exchange Robinhood announced the delisting of Cardano (ADA), Solana (SOL), and Polygon (MATIC).
The announcement from Robinhood came on June 9, ending support for popular altcoins Cardano, Polygon, and Solana. The tentative date for delisting, after a review, will start from June 27.
Robinhood cited the recent lawsuits against Coinbase and another crypto exchange as the reason. It added that the charges from the United States Securities and Exchange Commission (SEC) “introduced a cloud of uncertainty” around digital assets.
In addition to the charges against the crypto exchanges, the financial regulator called out at least 67 crypto assets as “unregistered securities.” The cryptocurrencies Robinhood seeks delist, are included in that list. Other than these digital assets, prominent tokens from the defi and metaverse sectors are also included.
While Coinbase was charged for not registering its operations with the SEC, another major exchange and its CEO faced even more serious charges including failure to disclose true ownership and control.
As of now, the SEC has labeled 67 cryptocurrencies as securities, which is going to have serious ramifications for the industry.
The firm affirmed its belief in the future of cryptocurrencies and started to look for following clarity on crypto regulations in the United States. This way, the customers can have better opportunities to indulge in the marketplace. It indicated to follow the regulatory compliances.
Robinhood Tries to Comply With Regulations
Since the announcement of delisting, it has been mayhem in most crypto price charts. Cardano (ADA), Solana (SOL), and Polygon (MATIC) lost up to 30% in the last seven days, according to CoinMarketCap.
Bitcoin (BTC) and Ethereum (ETH), however, were relatively stable, losing their values within single percentage digits. On the other hand, several altcoins in the leading crypto assets list recorded a drop in value in double percentage digits. The global cryptocurrency market capitalization is stalling at 1.05 Trillion after shedding up to 4% of its value in the last 24 hours.
ADA is the native token of the Cardano blockchain. After Robinhood delisted tokens, Charles Hoskinson, the founder of Cardano, remarked that it was not surprising that some firms quit in uncertain and hostile regulatory environments.
Given Robinhood’s delisting of prominent cryptocurrencies, uncertainty is likely to grip the industry. However, at the time of writing, there were no indications of any other crypto exchange to delist any cryptos.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.