Binance, the world’s largest cryptocurrency exchange, has announced that it will delist two trading pairs involving Cardano (ADA) and Polygon (MATIC) from its platform. The affected pairs are the leverage and margin tiers of USDⓈ-M ADABUSD and MATICBUSD Perpetual Contract.
Regulatory Pressure Could Be Responsible for the Delisting
The exchange did not provide any specific reason for this decision but advised its users to close their positions before Aug. 17 by 9:00 a.m. UTC, after which the pairs will be automatically settled and removed.
This move comes amid the growing regulatory scrutiny on cryptocurrencies, especially in the U.S., where the Securities and Exchange Commission (SEC) has recently classified ADA, MATIC, and Solana (SOL) as investment contracts.
This means that these tokens are subject to the same rules and regulations as securities, which could limit their availability and accessibility for investors. Some other platforms, such as Robinhood and eToro, have also delisted these tokens in response to the SEC’s stance.
The delisting of ADA and MATIC could have a negative impact on their price performance and market sentiment, as they lose access to one of the most popular and liquid trading venues.
However, some analysts believe that this could also be an opportunity for these projects to prove their value proposition and innovation potential, as they continue to develop their respective ecosystems and attract more users and developers.
For instance, Cardano is preparing for its highly anticipated Voltaire upgrade. Polygon, on the other hand, is a leading scaling solution for Ethereum, which has seen a surge in adoption and activity due to the high demand for decentralized applications.
Both ADA and MATIC have shown remarkable resilience in the face of regulatory uncertainty, as they remain among the top performers in the crypto market this year. As of writing, ADA is trading at $1.32, up 1.15% in the last 24 hours, while MATIC is trading at $0.97, up 2.11% in the same period. Whether they can sustain their momentum and overcome the challenges ahead remains to be seen.
