- The SEC’s recent enforcement actions are taking a toll on U.S. crypto businesses.
- Robinhood has been forced to delist popular crypto assets, including ADA.
- The move initially sparked fears of an ADA sell-off.
In June, the United States Securities and Exchange Commission stunned the crypto world by filing lawsuits against Binance and Coinbase. The move placed significant pressure on U.S.-based exchanges and trading platforms to rethink asset listings as the SEC labeled popular cryptocurrencies, including Cardano‘s ADA, as unregistered securities.
One crypto platform that has succumbed to the pressure is Robinhood which disclosed that it would be delisting ADA, MATIC, and SOL. Plans by the platform to sell any remaining holdings past its deadline had notably sparked fears of an ADA price dump. But these fears now appear to have been unwarranted.
Cardano’s ADA Defies Fears
On June 9, Robinhood informed customers that it would cease support for ADA, MATIC, and SOL on June 27, adding that it would sell the remaining balances at market value after the deadline. As the deadline approached, the idea of an impending sell-off sparked panic within the Cardano community.
Sponsored
However, well past the deadline, ADA’s price has yet to dive significantly. While the asset is trading 2.83% lower in the past 24 hours per data from CoinMarketCap, it appears to be part of a broader market correction and is nowhere near what many feared.
The asset’s resilience has notably sparked relief within the community, with popular Cardano influencer Chris O urging members to “resume BULLISH sentiment.”
Robinhood was estimated to hold over 103 million ADA worth about $30 million.
On the Flipside
- It is possible that most traders took their crypto holdings off the platform before the deadline.
- Robinhood cut about 7% of its workforce after delisting ADA, MATIC, and SOL.
Why This Matters
The lack of a significant price reaction implies that fears of an ADA sell-off following the Robinhood delisting were overblown.
Sponsored
Read this to learn more about ADA’s Robinhood delisting:
Cardano Delisted from Robinhood Amid Rising Regulatory Pressure
The Judge has made a crucial decision in the FTX fraud case. Find out more:
SBF Faces 115 Years in Prison as Judge Makes Crucial Decision
