- Cardano founder Charles Hoskinson has addresses the delisting of the ADA token by eToro
- There were suggestions that low liquidity was behind the move, but Hoskinson denied this
- Hoskinson laid the blame for the Cardano delisting on the unclear regulatory landscape
Cardano creator Charles Hoskinson has moved to calm the Cardano community over fears of the viability of the token after eToro banned U.S. users from buying and staking ADA. Hoskinson released a 13-minute video during which he calmed fears over a liquidity crisis that had blown up on social media in the aftermath of the eToro announcement, while pinning the blame on the dearth of a regulatory landscape rather than on eToro itself. Tron’s TRX token was also banned for U.S. investors, with liquidity thought to be the reason behind that delisting, hence the need for the clarification from Hoskinson.
eToro Bins Cardano to Avoid SEC Wrath
eToro announced its twin delisting on Wednesday, citing nothing more than “business-related considerations in the evolving regulatory environment” as the reasons for the changes. It doesn’t take Sherlock Holmes to realize however that the rationale was down to the potential for eToro to be on the hook for issuing unlicensed securities via the staking mechanism, although it doesn’t quite explain why the ADA and TRX tokens themselves cannot be traded.
Hoskinson said in the video that he was blindsided by the move, saying that it was “important to talk about in general the regulatory reality that cryptocurrencies are facing and the consequences that this systemic lack of clarity is having on the industry.” Hoskinson assured ADA holders that there were “no liquidity problems”, pointing to the news that BitStamp had listed the token on Monday, which was a larger exchange by volume than eToro.
Infrastructure Bill Can Bring Clarity
Hoskinson discussed the impact of the cryptocurrency element of the Infrastructure Bill and the apparent creation of a self-regulatory organization, stating “that and only that” can bring the kind of clarity needed for the space to expand. However , as we know, this will come at a significant cost to individual users and companies.