Cryptocurrencies from top blockchains experienced a significant downturn, with some digital assets losing over 20% of their values overnight. This decline was due to reputed financial services company, Robinhood, announcing the delisting of Cardano (ADA), Polygon (MATIC), and Solana (SOL) from its platform on June 27th, 2023 at 6:59 PM ET. The company reassured its users that no other coins were affected and their crypto holdings would remain secure on Robinhood.
This news came as ADA, MATIC, and SOL were mentioned in US Securities and Exchange Commission (SEC) lawsuits against leading crypto exchanges, Binance and Coinbase, earlier in June. Binance’s native token, BNB, also suffered a blow, dipping by about 9.5% to $236.
Investors are worried about the SEC’s actions and the potential long-term effects on the cryptocurrency market. Both lawsuits accuse the exchanges of securities law violations, though the specific charges vary. Binance, its CEO Changpeng Zhao, and two other parties face 13 charges, including defying regulators about the blockchain’s operations. In contrast, the SEC targets Coinbase for operating as an unregistered broker, clearing agency, and securities exchange.
Furthermore, blockchain data revealed whale activity related to Robinhood users depositing 9.4 million MATIC tokens to several exchanges, as reported by crypto analytics platform Lookonchain. Additionally, the crypto trading firm Cumberland deposited large quantities of MATIC tokens to both exchanges targeted by the SEC – 9 million to Binance and 5 million to Coinbase.
As a result of these events, ADA is down by 18.5%, SOL dropped by 22.7%, MATIC fell by 25.5%, and SHIB lost over 17% of its value, reaching $0.00000658 at the time of writing. However, flagship cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have also felt the ripple effects of this bear market. They dipped by 3.48% and 5.55%, respectively, over the last 24 hours, highlighting prevalent volatility in the digital asset space.
While the short-term consequences of these events are evident, the cryptocurrency community is left pondering the long-term implications of regulatory actions. Investors must determine if these developments signify an opportunity to gain entry at lower prices or signal a more profound shift in the market. As always, the crypto market landscape is never short of surprises and challenges, so buckle up and keep a keen eye out for emerging trends.
Source: Cryptonews
