Panic had washed over the Cardano community after news broke that midsize exchange eToro would be delisting the token, alongside Tron. The announcement came as a surprise and users milled onto social media to try to get explanations after receiving the email alerts. eToro had not given much of an explanation besides regulatory concerns which did not do much to quell the panic.
Many had worried that the delisting was a result of low liquidity. Given this, there had been the need for some clarification. Cardano founder Charles Hoskinson took to Twitter to address these concerns, assuring investors that liquidity had nothing to do with the delisting and soothing nerves.
Related Reading | eToro Announces Cardano (ADA) And Tron (TRX) Delisting, Points To Regulatory Concerns
Hoskinson Addresses Community
Hoskinson started out by explaining that he actually had no idea about the delisting because IOG, the developer arm which is mostly involved with, did not handle listings. In the 13-minute video posted to Twitter, he clarified that there were actually no liquidity problems with Cardano, which was not a factor in the delisting.
Turning to the regulatory concerns, the Cardano founder addressed the current global regulatory climate around crypto and pointed out that the consequences of this were “a systemic lack of clarity. Since there are no global regulatory standards, then usually, it is up to countries, states, and even organizations on how they handle matters concerning cryptocurrencies.
ADA price drops to three-month low | Source: ADAUSD on TradingView.com
Japan, for one, possesses some of the strictest cryptocurrency laws and regulations when it comes to crypto. However, ADA had been successfully trading in the region for months now without a problem. Also as more exchanges in the region had picked up the digital asset, liquidity had gone up. There is also adequate liquidity in the U.S., the founder says, which points to it not being a problem.
“The best you can do in these things is navigate this on a case by case basis, on an exchange by exchange basis.”
Good News For Cardano
After the news of the eToro delisting had hit the market, the price of ADA had immediately suffered the harmful impacts that an announcement like this could have. Cardano which had been suffering greatly in the market had dropped to a three-month low when it hit $1.67.
In his video, Hoskinson had pointed out that although the digital asset was being delisted from eToro, it was being listed on another exchange. Bitstamp had announced that it was listing the digital asset, a considerably larger exchange by volumed compared to eToro.
Related Reading | Cardano Increases Block Size By 12.5%, What This Means
There is no telling what effect a listing like this might have on the asset going forward. However, it comes at a time where the community is looking for a light at the end of the tunnel of bad news.
As for eToro, Hoskinson revealed that the Cardano team had no idea of the delisting. “On our side, we had no indication of this from eToro and it’s rather unfortunate that nothing was sent our way,” said the founder. “We at least could have better understood their reasons,” he added.
Featured image from CryptoSlate, chart from TradingView.com
Credit: Source link