- Amid regulatory fears, Robinhood plans to remove targeted coins from their trading platform post-June 27, with remaining cryptos on the exchange to be auto-sold at market value.
- The insolvent lending platform, Celsius, holds significant amounts of coins newly classified as securities, which it plans to sell or convert into Bitcoin and Ethereum from July 1.
Recent SEC lawsuits against Binance and Coinbase have left many crypto investors in a state of disarray. The SEC’s claim that popular coins such as ADA, SOL, and MATIC are unregistered securities has sparked a wave of concern. In response, trading platform Robinhood has announced that these coins in the SEC’s crosshairs will be removed from the trading venue after June 27. Any remaining cryptos on the exchange after this date will be automatically sold at market value.
Not long after Robinhood’s announcement, the altcoin market experienced a massive sell-off, predominantly affecting Solana (SOL), Cardano (ADA), and Polygon (MATIC). A Twitter user suggests that it is now up to the trading firm Jump-Crypto to offload the remaining ADA, SOL, and MATIC from the platform, potentially leading to another significant sell-off. However, on the bright side, many users have reportedly moved their coins to other exchanges, keeping the remaining holdings relatively small. The rapid price drop a few weeks ago also hints at many altcoin investors on Robinhood selling directly.
However, the bad news is that more sustained selling pressure could be imminent. The bankrupt lending platform, Celsius, reportedly holds close to $90 million in SOL, ADA, and MATIC, with its total altcoin holdings amounting to $215 million. Celsius intends to sell these holdings or convert them into Bitcoin and Ethereum starting July 1. Details from bankruptcy court documents suggest this process may be done in one go or distributed over time. Nonetheless, the sale will likely increase selling pressure on the impacted altcoins and could prolong the downward market trend.
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In an ideal scenario, the anticipated sell-off might have already been factored into the suppressed prices of ADA, SOL, and MATIC. Thus, Robinhood’s cut-off date today could represent a turning point in the altcoin market rather than heralding a crash. This could lead to a ‘sell the rumor, buy the news’ scenario in the crypto market. Consequently, the flows of the corresponding wallets from Jump-Crypto will be a key indicator of the course of the market. This will be closely monitored by a self-proclaimed crypto analyst on Twitter in the coming hours.
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