The Cardano community is concerned about the potential sell-off of Cardano token (ADA) by major platforms like Robinhood and Celsius, leading to fear, uncertainty, and doubt (FUD). While the reasons behind their actions differ, the risk of a significant ADA dump is causing growing concern within the community.
ADA’s trading volume stands at around $200 million, with Robinhood’s $30 million holdings and Celsius’s $26 million holdings accounting for a quarter of that volume, mentioned Chris O in his tweet.
1st. The 24hr $ADA trading vol was nearly $200million, JUST TODAY. The total holdings have each platform is 1/4 of that. pic.twitter.com/z7h17laG0A
— Chris O (@TheOCcryptobro) June 27, 2023
Robinhood had planned to sell cryptocurrencies, including ADA, Solana (SOL), and Polygon (MATIC), on June 27. On the other hand, Celsius would begin liquidating its crypto holdings starting from July 1.
Following this news, ADA experienced a 3% drop in the last 24 hours, reaching $0.27, while Solana and Polygon (MATIC) also saw decreases of 3% and 1%, down to $16.45 and $0.63 respectively. The crypto community became increasingly worried about the potential impact of such large-scale liquidation by these major platforms.
Robinhood ended its support for ADA, MATIC, and SOL on June 27, following the US Securities and Exchange Commission’s (SEC) lawsuits against Binance and Coinbase. The SEC has previously claimed that these tokens are securities, which led to backlash from the crypto community against the agency.
It is estimated that Robinhood will sell $30 million worth of ADA, $15 million of MATIC, and $25 million of SOL. In the midst of this FUD, Robinhood users have withdrawn or sold approximately half of their holdings over the past two weeks.
According to filings, Celsius currently holds $26 million worth of ADA, $60 million of MATIC, and $2.5 million of SOL. The platform plans to gradually liquidate these crypto assets starting from July 1. Reportedly, Robinhood is cutting 7% of its full-time staff, affecting 150 employees. This would mark Robinhood’s third round of layoffs within a year. The platform has faced challenges in recent months due to a decline in monthly users and regulatory pressures.
However, the crypto community is closely watching ADA and its potential to rise amidst the turbulence surrounding Robinhood and Celsius. Notably, popular crypto analyst Dan Gambardello has also shared his opinion on how ADA could experience a price increase amid the drama involving these two platforms.
ADA has been up by 9% in the past week but is down by 24% in the last 30 days. However, Robinhood and Celsius delistings have now been priced in by the market, suggesting there will be no further slump in prices, with the potential that ADA may experience an upswing in the weeks ahead.
