eToro Exchange Cuts Back on Cardano and TRON Offerings for US Customers

Crypto exchange eToro released a statement indicating that it is limiting support for Cardano (ADA) and TRON (TRX) positions and discontinuing staking for its U.S. customers.

Starting Dec 26, 2021, U.S. users on the eToro platform will not be able to open new positions on ADA or TRX, and staking for both assets is set to cease by Dec 31, 2021. The plans were made public on Nov 23, 2021.

Users will still be able to close their positions whenever they see fit before a 2022 deadline and receive USD when they sell ADA and TRX. The final staking reward payout goes to users on Jan 15, 2022. eToro is looking to make it possible in early 2022 for users to move their ADA and TRX to the eToro Money Wallet.

The reason for these actions by the exchange is the continually changing regulatory landscape.

Hoskinson downplays eToro’s effect on ADA

Cardano co-founder Charles Hoskinson downplayed eToro’s actions, saying that it shouldn’t cause alarm among investors through the spread of disinformation. He specifically took to Twitter to say that eToro’s announcement is not of significant concern, as ADA wasn’t actually being delisted on eToro. He emphasized that there are no ADA liquidity problems but expressed some disappointment that eToro had not given Cardano a heads-up.

On the same day, another major exchange Bitstamp, which is larger than eToro by trading volume, listed ADA for its U.S. customers. Bitstamp does $500M in volume per day, while eToro does $67M.

ADA and TRX numbers following announcement

ADA is still in the top-6 cryptocurrencies, with a market capitalization of almost $53B, a circulating supply of approximately 32 million coins. Regardless, ADA saw a drop of 8% in the last 24 hours following the eToro news. ADA’s price is $1.64 at the time of press, having hit a high of $3.10 in September. ADA is listed on most major exchanges, including Binance, Upbit, Huobi Global, OKEx, Kraken, and KuCoin.

The TRON Foundation is behind the development of the TRON blockchain and its associated cryptocurrency, TRX. TRON is focused on creating a decentralized internet. Its TRX token is listed on Binance, Kraken, Poloniex, OKEx, Kucoin, and FTX.

It uses the proof-of-stake consensus method and information on staking TRX can be found here in this BeInCrypto piece. TRX boasts a deflationary status, with 8 million TRX burned every day. TRX has a market capitalization of $7B and has 71 billion coins in circulation. The price of TRX at the time of press was $0.0978, having dropped 5.4% in the last 24 hours, according to Coingecko.