Why eToro Delists Cardano for US Customers?


US users of the eToro platform will soon be unable to trade Cardano and Tron cryptocurrencies by the end of the year.

Social trading platform and brokerage intermediary eToro announced on Tuesday that it is delisting Cardano (ADA) and TRON (TRX) for stateside users.

When will eToro delist Cardano?

Starting December 26, US clients will not be able to open new positions with ADA and TRX, and the staking function for these coins will be closed on December 31. At the same time, there will be no forced closing of positions - users will be able to hold positions open until December 26 as much as they like.

Users can also close positions, that is, sell coins whenever they want. But with staking, the situation is different - after December 31, users will not receive staking rewards for ADA and TRX. The last payment will take place on January 15, 2022, and will be automatically converted into US dollars.

These changes are related to concerns about an evolving regulatory environment,” eToro said in a statement.

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Firms operating in the blockchain industry often receive intense pressure from regulators when it comes to delisting coins or pulling the plug on certain services. Recall that in September, Coinbase scrapped its crypto lending plans after the US Securities Exchange Commission (SEC) threatened to sue the company. For now, however, the rise of decentralized exchanges and decentralized finance protocols have provided popular alternatives for those looking to legally bypass such crackdowns.

On its part, the eToro platform does not currently support sending cryptocurrencies to third-party addresses. In other words, if the user wants to withdraw funds, he or she must first sell the crypto asset and withdraw the received fiat currency to his account. However, rolling out in 2022, the developers plan to launch the eToro Money crypto wallet with support for transfers to third-party addresses.

The blog post said the limiting of sales won't happen for at least 30 days after offering support for redeeming ADA and TRX to the wallet. The wallet will continue to support the assets even after US users can no longer sell their holding for USD.

Cardano price dropped

ADA has experienced a rapid price increase in 2021 and currently ranks among the top 10 cryptocurrencies by market capitalization.

Following the surprising news that eToro announced would delist Cardano, ADA price dropped lower late Tuesday night. At the time of writing, Cardano, which was created by Charles Hoskinson, who is also a co-founder of Ethereum, was trading at $1.70 down 4.33% in the last 24 hours.

eToro delist Cardano ADA

The ADA coin has dropped 8.8% over a seven-day trailing period, while its market capitalization was down 6.9% over the past 24 hours to $56 billion.

The altcoin has lost 5.6% against the premier cryptocurrency Bitcoin and has also plunged 8.2% against Ethereum over the past 24 hours.

According to analyst, in order for the bulls to reverse the period of underperformance, Cardano price must reclaim support at the lower boundary of the governing technical pattern at $1.73, and target the October 27 low at $1.80.

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