Robinhood, the well-known stock trading and investment app, has recently announced that it will be removing three cryptocurrencies, namely Cardano (ADA), Polygon (MATIC), and Solana (SOL), from its platform starting on June 27, 2023.
This decision comes shortly after the Securities and Exchange Commission (SEC) of the United States categorized these cryptocurrencies as unregistered securities in their legal actions against Coinbase and Binance.
In an update, Robinhood stated, “We conduct regular reviews of the cryptocurrencies available on our platform.” They further added, “Following our latest assessment, we have made the decision to discontinue support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) effective from 6:59 PM ET on June 27th, 2023.”
Users are required to withdraw or sell their holdings of these assets on Robinhood and convert them into traditional currency or other eligible assets before the specified deadline. After the deadline, any remaining assets will be sold at prevailing market prices, and the proceeds from the sale will be returned to the users.
A representative from Robinhood stated that the statements made in the lawsuit by the Securities and Exchange Commission (SEC) introduced a sense of uncertainty regarding these assets. As a result, the decision was made by our team to discontinue support for them.
During testimony before the House Agriculture Committee, Dan Gallagher, the regulatory compliance head at Robinhood, mentioned that the company was actively reviewing its cryptocurrency offerings.
Cardano (ADA) experienced a 14% decline in its value over the course of this week. On the other hand, Polygon (MATIC) has seen a decrease of 5.51% in its price over the past 24 hours, reaching $0.73. This downward trend has persisted throughout the week, with a total decline of 16.0%, starting from $0.89 and leading to its current price.
Robinhood started supporting Solana and Polygon on its platform in April 2022, followed by the listing of Cardano in September 2022.
What are Solana, Polygon, and Cardano?
Solana is a blockchain platform that is known for its fast transaction processing capability. It claims to handle more than 50,000 transactions per second. It achieves this speed by using a unique method called Proof of History, which relies on timestamps to organize and verify transactions.
Polygon is a solution that helps make transactions on Ethereum faster and less expensive. It does this by adding a layer on top of the Ethereum blockchain, which allows for faster processing. It utilizes different technologies like Plasma, ZK-Rollups, and Optimistic Rollups to create separate chains that can communicate with Ethereum, making transactions quicker and more affordable.
Cardano is a platform that focuses on providing a secure, scalable, and sustainable environment for executing smart contracts. It uses a special algorithm called Ouroboros, which is based on proof-of-stake. This algorithm divides the network into epochs and slots, ensuring efficient and secure transaction processing while minimizing energy consumption.