Cardano falls further on eToro delisting announcement
Popular trading exchange to remove ADA and TRC for US users
The cardano (ADA) cryptocurrency continued to trade downward on Wednesday as traders and investors reacted to the news that Israeli social trading and multi-asset brokerage company eToro will delist the popular crypto for US users at the end of the year.
In a statement, the Israeli exchange announced: “US users will no longer be able to open new positions in, or receive staking rewards for, cardano (ADA) and TRON (TRX). You will still be able to close existing positions as you see fit.”
The company attributed the decision to “business-related considerations in the evolving regulatory environment”, adding: “We are only limiting users from opening new positions. We are not forcing users to sell any existing positions.”
The move came as something of a surprise since ADA, unlike other some other crypto projects such as XRP, is not engaged in legal proceedings with US regulators like the Securities and Exchange Commission (SEC).
Founded by Ethereum co-founder Charles Hoskinson, cardano enjoyed substantial gains in the first nine months of the year, rising by 1,500% between January and September.
Although its $54.4bn market capitalisation makes it the sixth-largest cryptocurrency in the world, ADA has fallen by 45.9% since the $3.10 all-time high it reached three months ago.
At the same time, another so-called “Ethereum Killer”, Solana (SOL), has leapfrogged ahead of it with a market capitalisation of $63.9bn.
While Tuesday saw eToro announce its removal of cardano, Wednesday saw Bitstamp, another prominent trading exchange, decide to onboard the cryptocurrency.
By 12:40 (GMT), Cardano traded down by 5% at $1.68, down 12% in the past four days.