Users Can't Trade These Three Tokens on Robinhood Anymore

Users Can’t Trade These Three Tokens on Robinhood Anymore

Updated: 10 June 2023

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As SEC’s crackdown on cryptocurrency exchanges and cryptos is getting more vicious, companies are stepping back from their crypto support as well. The latest report by Reuters says that three tokens won’t be available on Robinhood anymore. These tokens are Solana, Cardano, and Polygon.

Robinhood’s move wasn’t unexpected. The recent regulatory blow has hit the entire ecosystem. But how will the removal of these three assets impact the entire cryptocurrency market?

SEC Says Solana, Polygon, and Cardano are Securities

The Security Exchange Commission has always been up in arms about cryptocurrencies. Ever since the era of altcoins arrived, it has butted heads with exchanges in this matter. However, SEC is now in full attack mode and has named 61 cryptocurrencies that it thinks are securities.

Topping that list are three assets – Cardano, Polygon, and Cardano.

However, heads of all three assets, especially Solana, have come out to refute the SEC’s claim of these tokens’ security status.

Solana’s Native Token is Not a Security – Solana Foundation

As soon as SEC’s announcement about assets that it considers securities arrived, companies started to delist those assets. Solana, a token that has not been performing well already, was taken off the listing charts first by many exchanges.

Solana Foundation has stepped in to “address that elephant in the room” and has said that SOL is not a security token.

Giving a statement to Coindesk, Solana vehemently refuted the claims that it is as security.

“The Solana Foundation strongly disagrees that SOL is a security,” – said the Foundation. According to them, SOL is a native token of the Solana Blockchain, which is an open-source, community-based project that focuses on user development and engagement to evolve.

While this statement looks like a marketing term that might have been ripped straight out of the whitepaper, there is truth to it.

Even the larger crypto community hasn’t pegged SOL as a security token. Even developers working on Dapps built on Solana aren’t disagreeing. However, some developers have even come out to say this “We don’t think developers give a S***. SOL being a security doesn’t impact anyone building on top of Solana.”

While these statements are bold, they really undercut the precarious position Solana is in now. And now that Solana, along with Polygon and Cardano, are set to be removed from Robinhood – a negative price impact is imminent.

What Does Robinhood’s Removal of Three Tokens Mean for Investors?

According to the reports, the trading of ADA, MATIC, and SOL will cease to be active on the platform starting from June 27. But many believe that by that time, most of the Robinhood users would have sold these tokens. However, if users don’t take any steps, Robinhood will automatically sell those assets.

The latter is more likely as not every state has given people the ability to withdraw their SOL, ADA, and MATIC holdings from Robinhood.

Impact of Robinhood Announcement on These Tokens

Here is the overview of the negative impact the announcement has had on these tokens.

Solana is Down by 22%

Solana has taken a fall of 22%. People are rushing to sell off their SOL holdings in fear of the token being devalued when more exchanges start to follow Robinhood’s route.

Solana is trading at $14 at press time, and while there is some stability in the price charts, we predict the token may fall even more.

Polygon has Dropped 25%

Polygon is faring as well as Solana on the price chart. It has taken a fall of 25% in the last 24 hours alone. And the price pattern it has made is eerily similar to that of SOL.

At press time, MATIC is trading at around $0.5, with a market capitalization of $5.4 billion.

Cardano Drops 21%

While Cardano is fairing marginally better than Polygon, it has still dropped at around the same rate. It has lost 21% of its value in the last 24 hours.

ADA is trading at around $0.20 at the time of writing, with a market capitalization of $8.7 billion.

Investors Have Started to Cut Their Losses

This recent announcement has made investors decide to cut their losses and take a step back. Bitcoin has also experienced a minor drop of 3%, with $26k acting as its current resistance level.

While we are yet to see what larger impact SEC’s recent move would have on the market, we recommend taking pre-emptive measures. Diversify your crypto investments and keep an eye on exchanges that are still willing to keep those assets listed.

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