Boom: Robinhood Opens A Liquidation Of About $583M ADA, MATIC And SOL

On June 8, cryptocurrency exchange Robinhood decided to discontinue support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27, 2023 at 6:59 p.m. ET. The remaining coins supported by Robinhood include: BTC, ETH, LTC, ETC, BSV, BCH, DOGE, SHIB, COMP, LINK, UNI, AVAX, XLM, USDC, XTZ, and AAVE.

The most likely reason for the delisting is because the three cryptocurrencies above appear on the list of cryptocurrencies accused by the SEC as securities in the lawsuit against Binance and Coinbase.

On the list of tokens denounced by the SEC as securities, there are Solana (SOL), Cardano (ADA), and Polygon (MATIC) that are allowed to be traded on the platform by Robinhood. However, a strict move from the SEC could cause Robinhood to delist these 3 tokens before getting into legal trouble.

It is also because of this that these 3 announcements are deep in the price drops. According to on-chain data, Robinhood’s recent delisting decision will sink the price of these 3 tokens for at least the next 3 weeks.

According to a post by crypto analyst Miles Deutscher on Twitter, currently, the value of 14 altcoins held by Robinhood users is around $1.3 billion (excluding BTC, ETH, and DOGE), in of which ADA, MATIC, and SOL are worth approximately US$583 million. These users need to sell before June 27, according to the delisting notice.

some back of the napkin math ?

~$1.3Bn alts held at robinhood (excluding BTC, ETH, DOGE)

lets assume that all 14 supported alts (excluding USDC) are held in proportion to their circ mkt caps shown on coingecko
*loose assumption that does not factor in retail trader preference… https://t.co/ZUlVCHgAcO

— Fabian D. (@_FabianHD) June 9, 2023

Besides, most traders on Robinhood keep fiat currencies in their brokerage accounts, not stablecoins, so it has the potential to affect market liquidity. s per previous news, altcoins in general, have plummeted today, and many currencies including SOL, ADA, MATIC, have dropped more than 20% In the last 24h.

Today’s Cryptocurrency Prices. Source: CoinMarketCap

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