- On Tuesday, eToro announced that the exchange would be delisting Cardano for US customers starting on December 26
- eToro said the decision to delist Cardano was due to “business-related considerations” regarding the regulatory environment surrounding the crypto
- Following the announcement, ADA dropped from US$1.82 on Tuesday to US$1.59 on Wednesday – a drop of around 14%
Highlights:Popular crypto exchange, eToro, announced plans to delist cryptocurrency, Cardano (ADA) in the United States due to regulatory concerns.
Following the announcement, Cardano’s ADA token dropped to its lowest price in more than three months.
On Tuesday, eToro announced that the exchange will be delisting Cardano for US customers starting on December 26. This means that users in the US will no longer be able to open new ADA positions.
Furthermore, users will not be able to stake Cardano from December 31.
As well as Cardano, the eToro platform will also be delisting Tron (TRON), with users being unable to stake Tron, also in December 31.
However, the popular crypto exchange said that it has no plans to force sell and any Cardano or Tron holdings will be converted to open positions where customers can then choose to hold or sell.
Why Did eToro Delist Cardano?
So, what’s the reason? eToro said the decision to delist Cardano was due to “business-related considerations” regarding the regulatory environment surrounding the crypto.
Cardano founder, Charles Hoskinson, took to Twitter, on Tuesday, to rally against the decision and to ease concerns that Cardano’s price would be adversely affected, assuring users that there are no liquidity problems facing Cardano.
He further added that Cardano would feature on a Bitstamp, which is a much larger exchange by volume than eToro.
Hoskinson also blamed eToro’s decision on the lack of a “global regulatory standard” when it comes to how cryptocurrencies should be listed on exchanges.
Crypto’s Struggle Against Regulation
This is not the first time cryptocurrency has struggled against regulatory pressure. In 2017, the crypto space went into a year-long bear market following regulatory crackdowns in South Korea.
While the past two years have seen the crypto space soar to new heights, even in this year, the market has been hit by regulatory pressure. 2021 has seen a series of increasingly intensified crackdowns by the Chinese government of crypto trading and crypto mining in China. These crackdowns happened to correlate with a huge downturn in the crypto market, which saw some of the top digital currencies, including Bitcoin, lose more than half their value.
eToro Decision’s Effect on Cardano’s Price
Following the announcement, ADA dropped from US$1.82 on Tuesday to US$1.59 on Wednesday – a drop of around 14%, pushing the token well below its all-time high of US$3.10 set in September.
That being said, there’s no denying that Cardano has had substantial year-to-date growth, which is more than 800%.
The eToro delisting is unlikely to have any adverse long-term effects. After all, there are plenty of other exchanges out there.
However, growing regulatory pressure in the future could have a lasting effect not only on Cardano, but on the crypto market as a whole.