eToro, a retail digital asset exchange, has announced plans to pause the buying and selling of ALGO, DASH, MANA, and more altcoins for its United States customers. The community informed that even after halting trading, it is still supporting these crypto.
The reason to pause trading of these specific tokens and coins is that a few days earlier, the Securities and Exchange Commission (SEC) labeled these as securities, including 50 other tokens.
eToro removed these tokens from the trading list after its rival Robinhood delisted over half a dozen tokens following SEC’s action. eToro US’s official Twitter account posted the information about the delisting.
eToro has a framework in place which reviews the cryptoassets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering for US customers. (1/5)
— eToro US (@eToroUS) June 12, 2023
The tokens were delisted on June 12 at 6:00 am ET. Although the platform users can still hold and sell the tokens, new purchases are not allowed. It is important to note that eToro has yet to delist Solana and Cardano.
SEC’s action to term tokens as securities were followed by its lawsuit against Coinbase and other giant crypto exchanges. As per SEC, dozens of community members have questioned eToro about why they avoid delisting Solana even though it is secure.
It is not the first time eToro delisted any token or coin after SEC’s action earlier in 2020. The platform delisted XRP, the native token of Ripple, after its legal tussle with the SEC began.
Post SEC’s action, trading prices of dozens of tokens and coins slipped over 5-30%, and trading volume and market capitalization were also affected by regulators’ extreme action.
Most recently, eToro secured $250 Million in funding at a $3.5 Billion valuation. The company had previously called off its plans to go public at a $10.4 Billion valuation.
Labeling Tokens as Security Scaring Exchanges Away
Robinhood delisted dozens of tokens earlier this week, including Solana, Cardano, and others. After the SEC’s decision to label them as securities, their price fell more than 15% over the week.
The delisting of ADA from Robinhood immediately after SEC’s claims on it and other altcoins. However, the firm still needs to disclose the reason behind the delisting. However, many assumed the decision was due to the SEC’s decision against Coinbase.
A significant decline in trading volume and market capitalization was also witnessed in weekly sessions. Solana slipped 28.05% in seven days, and its trading volume declined by more than 27% in the last trading session.
The moving average of SOL suggests a strong sell, but the oscillators indicate neutrality. The market capitalization of the token is currently $6.21 Billion.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/13/etoro-pauses-trading-algo-dash-and-others-post-sec-actions/