Will Coinbase Delist Cardano (ADA) and Other 13 Altcoins? CEO Weighs In
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Delisting digital tokens is becoming a hot topic in the crypto world, especially due to unclear regulations. The CEO of Coinbase, a major U.S. cryptocurrency exchange, believes that removing 13 tokens including Cardano (ADA) without clear justification is unfair.
However, this situation arises from a legal battle with the U.S. Securities and Exchange Commission (SEC), which argues that these tokens, though a small part of Coinbase’s offerings, lack proper securities registration.
Coinbase to Delist Token to Ease Regulatory Pressure?
On a wider note, Brian Armstrong, the CEO of Coinbase, spoke with Financial Times reporter Scott Chipolina about the whole situation. He explained that while the delisting of ADA and other tokens is a concerning possibility, it wouldn’t significantly harm Coinbase’s revenue or overall existence.
However, he argues that imposing regulatory scrutiny before a clear rule has been unfair and unjustified. As there will be possible negative market effects including increased selling pressure on undervalued tokens and hence more market liquidity.
On the other hand, Cardano’s developer, Input Output Global (IOG), strongly disagrees with the SEC’s stance, asserting that ADA should not be labeled as a security.
In response to the SEC lawsuit, Coinbase has already filed a motion to have the case dismissed. The company is drawing parallels to a similar case involving Ripple to strengthen its argument against the SEC.
What is The Future of Cardano (ADA) and Other Tokens?
In the meanwhile, the fate of ADA and other tokens at risk of delisting remains uncertain. Armstrong’s remarks imply they might still trade on other exchanges even if not on Coinbase. A positive resolution of the SEC lawsuit could let these tokens stay. Yet, the case’s final outcome is unclear.
Having said that, investors holding Cardano (ADA) and other tokens must recognize the risks and seek advice from financial experts. ADA fell below $0.30, a 0.2% drop in 24 hours and 5% in a week, now at $0.293809. Recent weeks show nearly a 6% decline from the previous surge in value.
Filed under: Bitcoin - @ August 5, 2023 6:10 am