With the recent crypto dip, a lot of coins dumped. Some more than others. One coin that got hit very hard was Cardano. In this article we will talk about why ADA was hit so hard and whether it is understandable. Furthermore, we will take a look at the future of this project.
A few days ago the crypto market saw another dip. The reason for that was the news that India is set to ban cryptocurrencies. It is important to notice that this ban is supposed to affect retail investors and that institutions are still being allowed to hold crypto. As far as I understood it, this bill has yet to pass and is not in it formalized form yet (at the time of writing). Furthermore, it seems like it will not be an immediate ban, but one that slowly comes into play. Regardless the details of this new law, the market reacted very bearish and some coins saw double digits drops.
One coin that was hit very hard was Cardano. ADA dropped to as low as 1.4 $ and did not seem to recover as well as the other coins. A reason for that could be the announcement by E-Toro of delisting the ADA coin for all US-Users in the foreseeable future and a full removal by the end of the first quarter of 2022. The reason for this action is an “evolving regulatory environment” as described by E-Toro. With this being said, it is not specified which exact US regulation ADA is supposed to violate. It could be speculated that the SEC might classify ADA as a security, which should not be the case because it can pass the “Howey Test” (a test with which the SEC determines whether an asset is a security or not). Another possible reason could be the distribution of ADA. Given the fact that the founder of Cardano is holding a very large portion of it could be seen as a red flag. But this should mean that a Coin like Doge should be delisted as well since one wallet is holding more than 20% of the Doge circulating. With this being said, Doge is not delisted from this exchange.
In my opinion there is really no reason to delist ADA with all the information that I have available. This also means that it is a good opportunity to get into ADA or refill your positions on ADA. I know that a lot of people do not like ADA for appropriate reasons, but I like to believe in this project and its big community. I really think that Cardano will have a place in the bright future of crypto and that it has the potential to grow even bigger. Maybe this will not happen in this current crypto cycle but I really like to believe that it will happen rather sooner than later!
Published by ga38jem on
On 30th November 2021