Why Cardano’s price has fallen after eToro announces it will delist ADA in the US

The price of Cardano (ADA) has recovered slightly, after crashing from $1.80 just over a week ago.

It jumped by about 6 per cent on Thursday before taking a slight dip, and is now valued at $1.67.

Cardano had been declining over the last month, after reaching a record high of almost $3 back in September.

The crash was likely down to trading platform eToro announcing it will delist the coin by the end of the year in the United States due to regulatory concerns. It is also delisting Tron (TRX).

Users will still be able to close existing positions, but will not be able to open new ones.

The platform said: “US users will not be able to open new ADA or TRX positions starting on 26 December 2021. Additionally, staking for those assets will end on 31 December 31 2021. 

“These changes are due to business-related considerations in the evolving regulatory environment.”

What is Cardano?

Cardano was launched in 2017 and is a third generation blockchain, with Bitcoin and Ethereum being first and second generations respectively. Its token is known as ADA.

Coindesk says it “aims to directly compete with Ethereum and other decentralised application platforms as a more scalable, secure and efficient alternative”.

Cardano also touts itself as being the only extensively peer-reviewed blockchain platform in the industry and routinely publishes academic research papers on its website.

Investopedia says: “Each development phase, or era, in the Cardano roadmap is anchored by the research-based framework, incorporating peer-reviewed insights with evidence-based methods to make progress toward and achieve the milestones related to the future directions of the use applications of both the blockchain network and the ADA token.”

Cardano uses Ouroboros, an algorithm that uses proof-of-stake protocol to mine blocks.

Cardano’s website states: “Ouroboros is the first peer-reviewed, verifiably secure blockchain protocol, and Cardano is the first blockchain to implement it. Ouroboros enables the Cardano network’s decentralisation, and allows it to sustainably scale to global requirements without, crucially, compromising security.”

Should I invest in cryptocurrency?

People invest at their own risk and cryptocurrencies are not regulated by British financial authorities.

All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.

The Financial Conduct Authority (FCA) warned in January: “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.

“If consumers invest in these types of product, they should be prepared to lose all their money.”

Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown previously explained the risks to i.

She said: “On top of being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty but also means that investors have little or no protection against fraud.”

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