In a surprising turn of events, Cardano (ADA), Solana (SOL), and Polygon (MATIC) are facing a potential selloff as Robinhood Markets and Celsius plan to liquidate their crypto holdings. This decision comes as a result of the US SEC lawsuits against Binance and Coinbase, prompting backlash from the crypto community.
Robinhood plans to cease support for ADA, SOL, and MATIC on June 27, forcing users to withdraw or sell their holdings. Thus far, Robinhood users have already withdrawn or sold approximately half of their respective holdings. The online brokerage firm is planning to sell substantial amounts of these cryptocurrencies, including $15 million of MATIC, $25 million of SOL, and $30 million worth of ADA. Jump Trading, which oversees Robinhood’s crypto assets, will be responsible for liquidating these remaining holdings immediately after the designated cutoff time. Possible liquidation methods include selling on the OTC market, incorporating assets into their books, hedging on perps, or depositing to centralized exchanges.
Similarly, Celsius will begin a gradual liquidation of their crypto assets on July 1. According to their filings, the firm holds $2.5 million worth of SOL, $26 million of ADA, and $60 million worth of MATIC. Since the announcements by Robinhood and Celsius earlier this month, ADA, SOL, and MATIC have been underperforming the market and their peers.
The current ADA price trades at $0.27, down 3% in the last 24 hours. Solana and MATIC prices also experienced declines, trading at $16.46 and $0.65, dropping 3% and 1% in 24 hours, respectively.
In addition to the upcoming liquidations, Robinhood is also laying off around 150 employees, or 7% of its workforce. This is the company’s third round of layoffs in a year. Robinhood’s decline in monthly active users and revenue, coupled with decreased trading volumes and increased regulatory pressure, have contributed to the company’s ongoing struggles.
As the crypto market faces ongoing challenges, the crucial month of July looms large for the ongoing Ripple vs. SEC lawsuit and the XRP price, which could have significant implications for the overall market. With the Terra Luna Classic (LUNC) community supporting the USTC Repeg and Quant Team Proposal, it appears that the cryptocurrency world is inexorably entwined with the broader financial landscape.
The continually evolving situation serves as a reminder that thorough market research is necessary before investing in cryptocurrencies, as personal financial loss remains a potential risk due to these market fluctuations.
Source: Coingape
