The founder of Cardano solved the liquidity problem of eToro’s delisting

After news that the medium-sized exchange eToro will delist tokens together with Tron, panic swept the Cardano community. The announcement was unexpected. After receiving email alerts, users sought explanations on social media. Except for regulatory concerns, eToro did not give much explanation, which did not have much effect on quelling the panic.

Many people worry that the delisting is the result of low liquidity. In view of this, some clarification is necessary. Cardano founder Charles Hoskinson addressed these concerns on Twitter, assuring investors that liquidity has nothing to do with delisting and relieving tension.

Related Reading | eToro announces the delisting of Cardano (ADA) and Tron (TRX), pointing out regulatory issues

Hoskinson speaks to the community

Hoskinson first explained that he actually didn’t know about the delisting because the main developer arm IOG did not handle the listing.inside 13-minute video posted to Twitter, He clarified that Cardano does not actually have liquidity issues, which is not a factor for delisting.

When it comes to regulatory issues, the founder of Cardano talked about the current global regulatory environment surrounding cryptocurrencies, and pointed out that the consequence is “systemic lack of clarity. Since there is no global regulatory standard, it usually depends on how the country, state, or even organization handles it.” Questions about cryptocurrency.

ADA price drops to three-month low | Source: ADAUSD on TradingView.com

On the one hand, when it comes to cryptocurrency, Japan has some of the strictest cryptocurrency laws and regulations. However, ADA has been successfully trading in the region for several months without any problems. In addition, as more and more exchanges in the region acquire digital assets, liquidity is also increasing. The founder said that the United States also has sufficient liquidity, which shows that this is not a problem.

“In these things, the best thing you can do is to navigate one by one on an exchange-by-switch basis.”

Good news for Cardano

After the news of eToro’s delisting came out, the price of ADA was immediately affected by the possible adverse effects of such announcements. Cardano, which was hit hard in the market, fell to a three-month low when it hit $1.67.

Hoskinson pointed out in his video that although the digital asset has been delisted from eToro, it is currently listed on another exchange. Bitstamp has announced that it will list digital assets, and compared to eToro, the transaction volume is much larger.

Related Reading | Cardano increased the block size by 12.5%, what does this mean

No one knows what effect a listing like this might have on future assets. However, at this time the community is looking for the light at the end of the tunnel of bad news.

As for eToro, Hoskinson revealed that the Cardano team has no knowledge of delisting. “On our side, we didn’t get any signs from eToro, and unfortunately nothing was sent to us,” the founder said. “We can at least understand their reasons better,” he added.

Featured image from CryptoSlate, chart from TradingView.com



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