Cardano’s ada token plummeted to its lowest price on Wednesday after the popular retail trading platform eToro announced plans to exclude US cryptocurrencies from regulatory concerns. Infuriated the early crypto market.
According to cryptographic data website CoinMarketCap, the price of cardano’s ada tokens on the blockchain plummeted by more than 9% by 2:00 pm Wednesday to a low of $ 1.60, the highest ever since September. It was nearly 49% below $ 3.10.
EToro, one of the world’s largest exchanges for retailers, announced on December 26 that it will exclude ada and Tron tokens in the United States and ban users from buying cryptocurrencies and earning rewards. Immediately after that, the plunge began on Tuesday.
Israel-based eToro said the changes were made due to “business-related considerations in an evolving regulatory environment,” adding that users can continue to sell tokens they already own.
In the video Post On Tuesday, Cardano founder Charles Hoskinson blamed the lack of “global regulatory standards” governing how cryptocurrencies are listed on exchanges, trying to ease concerns that ada prices would be affected. I tried. A by-product of “fear, uncertainty, disinformation”.
Other cryptocurrencies fell alongside ada on Tuesday, with tron, a small token with a market capitalization of $ 7 billion, down 6%, and sol, polkadot, and dogecoin down 8%, 6%, and 5%, respectively. ..
Despite this month’s tanking, ada has surged an astonishing 800% this year alone and now boasts a market value of about $ 54 billion compared to its peak of about $ 95 billion.
“This is exactly the nature of the game, and the only way the industry can solve it is through regulatory clarification,” Hoskinson, who co-founded Ethereum, the leading cryptocurrency platform, said Tuesday. .. “For a European entity with a major European customer, the cost of US exposure is so high that it usually limits US exposure,” he added, referring to eToro’s European residence. US-based exchanges, such as Coinbase, “already” pay “for regulatory compliance, making it” much easier “to comply with domestic regulations.
The wave of regulatory crackdowns that began in 2017 has triggered a long-standing bear market with 80% revisions to cryptocurrency prices and inflation concerns and institutional hiring during the pandemic until new highs. rice field. Similar concerns have shaken the market several times over the past year, tightening regulations in China and reducing the value of global cryptocurrencies by as much as 45% this summer.
What to watch out for
In a long-awaited report released this month, President Joe Biden’s team of Supreme Economic Advisors called on Congress to introduce regulatory oversight and a formal market structure for cryptocurrencies as soon as possible. As a first step, lawmakers demanded that exchanges report cryptocurrency transactions in excess of $ 10,000 to the Internal Revenue Service, including highly controversial provisions in the recently enacted infrastructure bill.
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