One of the most popular trading apps has announced that as many as three leading coins will completely disappear from its offerings starting June 27. Delisting will be experienced by Cardano (ADA), Solana (SOL) and Polygon (MATIC). The decision follows lawsuits that have just begun.
Robinhood’s cryptocurrency offering shrinks significantly
Robinhood, a popular shopping app, has announced surprising news for its users. As of June 27, 2023, it will stop supporting three cryptocurrencies – Cardano (ADA), Solana (SOL) and Polygon (MATIC). The decision has shocked the cryptocurrency community, sparking a discussion about the future of these assets.
The company did not leave us in the dark about the reasons behind the decision. In an update it stated:
“We are committed to regularly reviewing the cryptocurrencies available on our Robinhood app. After careful review, we have decided to end support for Cardano (ADA), Polygon (MATIC) and Solana (SOL) on June 27, 2023, at 18:59 ET.”
Users have been notified to withdraw or sell the indicated assets before the deadline. Robinhood recommends converting them into fiat or other eligible assets in their platform.
With the arrival of the set date, these assets will be sold at current market prices. The proceeds from the sale will be allocated to the users’ respective accounts. However, many people are wondering how this decision will affect their investments and future profits.
SEC lawsuits prompt Robinhood action
The above decision came a few days after the lawsuits that the Securities and Exchange Commission (SEC) has filed against the exchanges Binance.US and Coinbase. The allegations in the case of both platforms are very similar and concern enabling trading in unregistered securities. Among the coins listed that allegedly constituted such were ADA, SOL and MATIC.
Dan Gallagher, who serves as Robinhood’s chief compliance officer, testified before a House of Representatives committee on Tuesday, June 6, and asserted that the entity he manages is “actively reviewing” the cryptocurrency offerings it makes available. It is not ruled out that this event may have had a significant impact on the final decision.
Cryptocurrencies remain at Robinhood
As a result of these actions, Robinhood’s offering will drop from eighteen coins to fifteen. Among those that will remain “on board” are Bitcoin (BTC) and Ethereum (ETH), as well as the popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB).
Investments will also be possible in Avalanche (AVAX) and Tezos (XTZ), as well as Aave (AAVE), Compound (COMP) and Uniswap (UNI), and several smaller cryptocurrencies.