Cardano Founder Addresses Liquidity Concerns Over eToro Delisting
25 November 2021 - 10:00AM
NEWSBTC
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
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