eToro to delist Tron, Cardano for US users by end of year citing regulatory concerns

eToro recently revealed that the social-trading platform will remove Cardano and Tron for customers in the United States by the end of the year, due to regulatory concerns. Users will still be able to withdraw their ADA and TRX holdings.

eToro has no plans to force sell client holdings

eToro announced that the exchange will be delisting Cardano and Tron for US customers starting on December 26. Users in the region would no longer be able to open new ADA or TRX positions.

Starting on December 31, staking functionality for both of the assets would also not be available. According to eToro, the decision was made due to business-related considerations regarding the regulatory environment concerning the two cryptocurrencies.

US customers that are holding existing positions of Cardano and Tron would still be able to close out their positions at any time. eToro stated that it has no plans for force selling. Any ADA or TRX holdings in the exchange’s Smart Portfolio will be converted to open positions in users’ personal portfolios where customers can choose to hold or sell.

Wallets will be in withdraw-only mode until Q1 2022 when selling will also become limited. The move came unexpectedly as ADA and TRX have not been associated with regulatory concerns in the United States, unlike XRP, which has been involved in an ongoing lawsuit with the US Securities & Exchange Commission (SEC). 

The social-trading platform further clarified that users will still be able to securely hold existing ADA and TRX positions and close them at any time and receive US dollars. The exchange is working on developing its eToro Money crypto wallet compatible with the two cryptocurrencies, expected to roll out early next year.

Cardano price at risk of 25% drop

Cardano price recently lost grip of a significant foothold, which now puts ADA at risk of a massive fall toward $1.26. The descending parallel channel projects a 25% plunge for the token, as the token sliced below the lower boundary of the prevailing chart pattern.

The first line of defense for the Ethereum killer is at $1.70, then at the June 15 high at $1.61. Additional foothold will appear at the July 4 high at $1.49, then at the support line given by Momentum Reversal Indicator (MRI) at $1.26, coinciding with the aforementioned bearish target.

ADA/USDT daily chart

In order for the bulls to reverse the period of underperformance, Cardano price must reclaim support at the lower boundary of the governing technical pattern at $1.73, and target the October 27 low at $1.80.