Cardano had experienced panic following the announcement that eToro (a medium-sized cryptocurrency exchange) would remove Tron from its token list. Users were shocked to hear the news and rushed to social media for answers. Besides regulatory concerns, eToro did not provide much explanation. This didn’t do much to calm panic.
Many were concerned that low liquidity would lead to the delisting. This led to the necessity of clarification. Charles Hoskinson of Cardano, the founder, addressed these fears via Twitter. He assured investors that liquidity did not have anything to do with delisting.
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Hoskinson speaks to the Community
Hoskinson explained that he had no knowledge about the delisting, as IOG, the main developer arm involved, does not deal with listings. The 13-minute video posted to TwitterHe clarified that Cardano had no liquidity issues, and this was not an issue in 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. Because there aren’t any global standards for regulating cryptography, countries, states and organizations can decide how to handle matters pertaining to cryptocurrencies.
Source: ADAUSD on TradingView.com| Source: ADAUSD on TradingView.com
Japan has some of the most stringent cryptocurrency laws. ADA was trading well in the region since months and had not experienced any difficulties. Liquidity also increased as the regional exchanges began to accept the digital asset. According to the founder, there’s also sufficient liquidity in the U.S. which suggests that it is not 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 news about the eToro Delisting hit the markets, the price for ADA immediately fell due to the potential negative consequences that such an announcement could have. Cardano had suffered greatly on the market and had reached a low of $1.67 three months ago.
Hoskinson pointed out in his video that the digital asset had been delisted by eToro but was now being listed on an alternative exchange. Bitstamp, a larger volume exchange than eToro, had previously announced it would list the digital asset.
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The potential impact that a listing of this nature could have on an asset’s future is unknown. It comes at an opportune time for the community to look for good news after the dark tunnel.
Hoskinson said that eToro had not been informed by the Cardano group about 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 taken from CryptoSlate. Chart by TradingView.com