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Robinhood To Cease Support For Cardano, Polygon,& Solana Following SEC Findings

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In a surprising move, popular investment platform Robinhood has announced its decision to end support for three prominent cryptocurrencies: Cardano (ADA), Polygon (MATIC), and Solana (SOL).

The decision comes after the U.S. Securities and Exchange Commission (SEC) recently determined that a significant number of tokens listed on major exchanges Coinbase and Binance qualify as securities.

Robinhood, widely known for its user-friendly interface and accessibility to retail investors, has been offering a diverse range of cryptocurrencies for trading. 

However, due to the SEC’s findings, the platform has deemed it necessary to discontinue support for ADA, MATIC, and SOL. The delisting will occur on June 27th, 2023, at 6: 59 PM Eastern Time.

The company announced a post titled “Cardano (ADA), Polygon (MATIC), Solana (SOL) Update,” where they emphasized their commitment to regularly reviewing the cryptocurrencies available on their platform. Based on their most recent assessment, Robinhood has decided to halt support for the aforementioned tokens.

Robinhood: Deadline & Options For Users

Affected users need not panic, as they will still have the ability to buy, sell, and hold ADA, MATIC, and SOL until the specified deadline. Additionally, transfers of these cryptocurrencies will be permitted until June 27th, 2023. 

However, it’s important to note that residents of Hawaii and Nevada will be unable to purchase ADA, MATIC, and SOL. In contrast, residents of New York will not be allowed to transfer these tokens.

Any remaining ADA, MATIC, and SOL in users’ Robinhood Crypto accounts will be automatically sold at their market value after the deadline. The proceeds from these sales will be credited to users’ Robinhood buying power, which can then be utilized for future investments.

The announcement explicitly states that this decision solely affects ADA, MATIC, and SOL, reassuring users that all other cryptocurrencies held on Robinhood will remain unaffected. Traders residing in states other than Hawaii, Nevada, and New York can continue to engage in transactions involving other available coins.

To alleviate concerns about the safety of users’ cryptocurrencies, Robinhood emphasizes their adherence to industry-leading security measures. 

The vast majority of customers’ holdings are stored in cold storage, a secure offline environment. Additionally, Robinhood affirms that they do not engage in lending or leveraging customers’ coins, ensuring their protection.

For those unwilling to part ways with their ADA, MATIC, and SOL investments, the option to transfer these tokens to external wallets or other crypto platforms is available for users residing in states where transfers are permitted. 

However, after the deadline, any remaining ADA, MATIC, and SOL in Robinhood accounts will be automatically sold and credited to users’ Robinhood buying power.

Related Reading |Ripple Resilience: XRP Holds Strong At $0.50 Amidst Regulatory Storm

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