ADA Plunges After eToro Limits Users From Opening New Cardano And Tron Positions

KEY POINTS

eToro discontinues users from opening new ADA and TRX positions
The firm will also discontinue Cardano and Tron staking
The final staking rewards will be paid out on Jan. 15, 2022

Opening new positions for Cardano and Tron will be discontinued in the United States, according to a recent announcement by eToro. Also, the users of the platform will not be able to take advantage of the rewards received from staking these tokens.

eToro, a cryptocurrency trading platform, is now limiting users from buying Cardano and Tron as per a new announcement from the firm Tuesday. The staking for these assets will end on Dec. 31, and users will be paid out the final rewards on Jan. 15, 2022. This reward will be paid in USD and not Cardano’s native token ADA.

However, the firm claims that it is not asking for people to sell their tokens. The platform will still allow Cardano holders to remain in possession of their ADA securely. Furthermore, the users can cash in their Cardano anytime they want and receive USD after selling them.

In the statement, the platform also said that they are working on integrating Tron and Cardano with the eToro Money crypto wallet. This would enable investors to transfer their ADA from the eToro platform to the wallet.

The firm cited regulatory concerns in the U.S. as the reason for this decision. The regulatory pressure on crypto exchanges, as well as investors, is increasing after the approval of the infrastructure bill by President Biden which contained tough reporting provisions for brokers, a term that critics said was ambiguously defined.

Following the announcement from eToro, as of 1:15 a.m., ADA prices dropped by more than 6%, leading to a fourth consecutive bearish daily candle. This makes Cardano bearish for the third month in a row, since reaching the all-time high in August when prices rose by nearly 110%.

As per the data from CoinMarketCap, the trading volume of the token rose by 50.22%, resting at $2.18 billion. On the other hand, the market cap of the token is at $56.3 billion, down by 6% from the previous day. The ADA token is already down by 45.42% from its all-time high of $3.1 as the smart contracts platform takes the 6th rank in the industry.