eToro restricts trading for US users, prohibits staking ADA and TRX; ADA almost halves in value following the introduction of smart contracts.
The well-known brokerage platform eToro has caused dissatisfaction among many users after releasing a statement, with some vowing to switch to other platforms in the future. This also indicates that regulatory issues are not as calm as they may appear on the surface. Apart from Ripple's XRP, many other cryptocurrencies are still facing potential regulatory pressure.
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Restrictions on US Users
eToro announced on 11/23 that starting from 12/26 this year, US users will no longer be able to open new positions for Cardano ADA and Tron TRX. The ADA and TRX staking rewards introduced on 10/1 last year will also be canceled, and the current staking mechanism will end on 12/31 this year.
eToro stated that this decision was made due to the potential impact on related businesses in the ever-changing regulatory environment.
US users can still hold and sell ADA and TRX spot positions. The final staking reward will be paid to users in USD on 1/15 next year. However, after the first quarter of next year, the selling of both assets will be restricted, while withdrawals will not be limited, and users can still withdraw to the eToro Money crypto wallet.
Founder: No Problem
Capital Venture founder and Cardano supporter Dan Gambardello tweeted that ADA has just been listed on Bitstamp with a daily trading volume of up to $500 million, dismissing the negative news of ADA being delisted from a small exchange with a daily trading volume of $67 million.
Let me get this straight. Cardano just got listed on a major crypto exchange (Bitstamp) that does $513B in volume a day, but all I am seeing is negative news about Cardano getting delisted from a small exchange (etoro) that only does $67B.
Follow the data.$ADA
— Dan Gambardello (@cryptorecruitr) November 23, 2021
The founder of Cardano also remarked:
We haven't even been delisted. ADA is still listed on eToro, and non-US users can still freely trade.
And we didn't even get delisted. Ada is still on etoro and non-US customers can freely trade https://t.co/FAcUgv9ERj
— Charles Hoskinson (@IOHK_Charles) November 23, 2021
As mentioned earlier, this event brings to mind the ongoing lawsuit of Ripple. After the news was released, both TRX and ADA fell along with the Bitcoin market downturn, with ADA experiencing a deeper decline, dropping by as much as 46% since hitting an all-time high on 9/2.
