28 Jun 2023
Cardano Community on Alert as Robinhood and Celsius Prepare for ADA Sell-Off
Recent discussions within the Cardano community have raised concerns over the potential large-scale sell-off of Cardano's native token, ADA, by major platforms Robinhood and Celsius. While opinions within the community vary, with some dismissing the sell-off as insignificant and already priced into the market, others remain wary of the impact. This article explores the differing views and analyzes the potential consequences of the impending ADA dump.
The Cardano (ADA) community is currently experiencing heightened discussions surrounding the potential massive sell-off of ADA by major platforms Robinhood and Celsius.
Robinhood and Celsius Sell-Offs
Robinhood, with a cutoff date of June 27, has announced the sale of all remaining ADA at market value. Jump Crypto, responsible for managing crypto for Robinhood, will need to liquidate its holdings immediately. On the other hand, Celsius has the flexibility to gradually sell off its ADA holdings over several months. The approach taken by Jump will play a crucial role in determining the outcome, with potential options ranging from market sales to depositing assets onto centralized exchanges.
Divergent Opinions
Enthusiasts who believe that the sell-off would not be extraordinary for the Cardano token argue that the total holdings of Robinhood and Celsius represent only a fraction of the ADA trading volume. They also highlight that users have had ample time to transfer their ADA to alternative wallets. According to this perspective, the market has already factored in the sell-off, and the negative sentiment surrounding it may have a greater impact than the actual sales.
However, others in the community remain concerned about the situation. They emphasize that the decisions made by Robinhood and Celsius have sparked confusion and uncertainty. The sell-offs have raised questions about the potential consequences for ADA's price and the broader market. These sceptics eagerly await further developments to gain clarity on the situation.
Potential Impact on ADA Price
The price of Cardano (ADA) has dropped by 2.7% in the past 24 hours, falling to $0.276, ahead of the delistings on Robinhood and Celsius. ADA's performance is down over the past week which follows a trend seen over the last 30 days.
The current fall in price highlights a real concern for ADA, given its recent classification as a security by the SEC. This classification raises the possibility of further exchange delistings, especially from platforms serving US-based customers. However, some speculate that the market has already priced in the Robinhood and Celsius delistings, and Cardano's strong fundamentals may help drive a recovery in the long term.
Flagship Thought
The Cardano community remains on high alert as the possibility of major sell-offs by Robinhood and Celsius looms. Divergent opinions continue to fuel discussions within the community, leaving enthusiasts and skeptics eager to see how the situation unfolds in the coming days. The sell-offs' potential impact on ADA's price and the broader market remains uncertain, but Cardano's strong fundamentals and the belief that the market has already priced in the delistings offer some hope for a potential recovery in the long term.
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