Veröffentlicht von • Robinhood has announced its decision to discontinue support for cryptocurrencies Cardano (ADA), Polygon (MATIC), and Solana (SOL) from June 27.
• This comes as a response to SEC’s recent lawsuits against major crypto exchanges, which alleged that several cryptocurrencies are unregistered securities.
• Following the announcement, post the June 27 deadline, any holdings in ADA, MATIC, or SOL left in users’ Robinhood Crypto accounts will be automatically sold at market value.
Robinhood To Cut Support For Cardano, Polygon, And Solana
Following the SEC’s recent lawsuits against major crypto exchanges, trading platform Robinhood has announced its decision to discontinue support for cryptocurrencies Cardano (ADA), Polygon (MATIC), and Solana (SOL) from June 27.
Implications For Robinhood Users
Robinhood assures its users that apart from ADA, MATIC, and SOL, no other cryptocurrencies on their platform will be impacted by this decision. However, post the June 27 deadline any holdings in ADA, MATIC or SOL left in users’ Robinhood Crypto accounts will be automatically sold at market value with the proceeds credited to the users’ buying power within Robinhood.
SEC Allegations And Recent Lawsuits
The timing of Robinhood’s announcement coincides with the Securities and Exchange Commission’s (SEC) recent lawsuits against crypto exchanges Binance and Coinbase. In these lawsuits, the SEC claimed that several cryptocurrencies including ADA MATIC and SOL are unregistered securities.
„Burning Mechanisms“ And Potential Profit Avenues
In the suits the SEC has particularly highlighted that burning mechanisms of SOL and MATIC tokens led investors to consider these purchases as potential profit avenues. It claimed that solana’s ‘deflationary mechanism‘ which includes burning SOL could cause investors to view their SOL purchases as potentially profitable due to built-in mechanism to decrease supply subsequently increase price.
Conclusion
The future of these tokens on major crypto platforms have been thrown into uncertainty with Robinhood being first to react. While it is unclear how other exchanges will respond it is likely that more changes may be seen in coming days.