Why ADA crypto is down after eToro took it off the list and what could happen next

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The price of Cardano (ADA) slumped Tuesday night from $ 1.80 to $ 1.67.

The coin lost 7% of its value in a matter of hours, but has since recovered slightly, rising to $ 1.70 on Wednesday morning.

Cardano hit its all-time high of nearly $ 3 in September.

Tuesday’s crash is likely due to the eToro trading platform which announced that it would delist the coin by the end of the year in the United States due to regulatory issues. It also proceeds to the delisting of Tron (TRX).

Users will still be able to close existing positions, but will not be able to open new ones.

The platform said, “US users will not be able to open new ADA or TRX positions from December 26, 2021. Additionally, staking for these assets will end on December 31, 2021.

“These changes are due to business considerations in a changing regulatory environment. “

What is Cardano?

Cardano was launched in 2017 and is a third generation blockchain, with Bitcoin and Ethereum being first and second generation respectively. Its token is known as ADA.

Coindesk says it “aims to directly compete with Ethereum and other decentralized application platforms as a more scalable, secure and efficient alternative.”

Cardano also boasts of being the industry’s only widely peer-reviewed blockchain platform and regularly posts academic research papers on its website.

Investopedia says: “Each development phase, or era, of the Cardano roadmap is anchored in the research-based framework, integrating peer-reviewed information with evidence-based methods to progress and achieve related milestones. future directions of use. blockchain network and ADA token applications.

Cardano uses Ouroboros, an algorithm that uses a proof-of-stake protocol to mine blocks.

Cardano’s website states, “Ouroboros is the first peer-reviewed and verifiable blockchain protocol, and Cardano is the first blockchain to implement it. Ouroboros enables the decentralization of the Cardano network and allows it to adapt sustainably to global requirements without, crucially, compromising security. “

Should I invest in cryptocurrency?

People invest at their own risk and cryptocurrencies are not regulated by the UK financial authorities.

All crypto investments are risky, but coins like Shiba Inu are particularly volatile and you should be prepared to lose whatever you invest.

The Financial Conduct Authority (FCA) warned in January: “Investing in crypto-assets, or related investments and loans, usually involves taking very high risks with investor money.

“If consumers invest in these types of products, they should be prepared to lose all of their money. “

Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown previously explained the risks to i.

She said: “In addition to being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty, but also means that investors have little to no protection against the risk. fraud.”

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