Cardano (ADA) and TRON (TRX) both took a dive after online trading company eToro delisted the cryptocurrencies, baffling the crypto market participants.
Cardano (ADA) and TRON (TRX) as a result of the delisting incurred an 8% and 5% downturn, respectively.
The brief statement of eToro justified its most recent choice on undisclosed regulatory concerns. A representative of eToro stated that “the regulatory landscape for crypto is evolving rapidly. As a result, we will be limiting the ability for U.S. users to open new positions in, or earn staking rewards for, ADA and TRX.”
Users will no longer be allowed to create new positions in Cardano (ADA) or TRON (TRX) after December 26, and from December 31, users will no longer be able to earn dividends of staking either one of the cryptocurrencies.
Even though eToro is not mandating its users to sell their coins, there has been an increase in selling pressure since the news came out.
“As a user and former employee I support their decision but a bit more clarity into their train of thought would be appreciated by the community,” said CEO of Quantum Economics, Mati Greenspan, saying that he is unaware of specific regulations that apply to Cardano (ADA) and TRON (TRX) alone as opposed to other cryptocurrencies.
Similarly, Carol Goforth, the University of Arkansas Law professor seems to think that even though eToro has every right to delist cryptocurrencies for the sake of complying with consumer protection laws in the US, there is no specific reason to delist Cardano (ADA) and TRON (TRX) in particular.
It is indeed perplexing how eToro can put trading limits now, seeing as Bitstamp (a bigger exchange than eToro) just recently listed Cardano (ADA) in its platform. Unless eToro has exclusive insights into these two cryptocurrencies, the decision seems unconvincing at best according to Goforth.
Goforth went on to say that TRON (TRX) has a high trading volume which still would not be investigated by regulatory authorities. Nonetheless, there is a possibility that internal review results have pointed towards increased volatility around these cryptocurrencies, which might potentially put a regulatory bullseye on eToro.