eToro and Robinhood Modify U.S. Cryptocurrency Offerings Amidst Regulatory Changes

The global cryptocurrency landscape is witnessing significant shifts, with leading trading platforms, eToro and Robinhood, adjusting their U.S. cryptocurrency offerings. Both platforms are responding to the rapidly evolving regulatory environment in the United States, affecting popular cryptocurrencies such as Algorand (ALGO), Decentraland (MANA), Dash (DASH), Polygon (MATIC), Solana (SOL), and Cardano (ADA).

Starting at 6:00 AM ET, Wednesday, July 12, 2023, eToro U.S. customers will not be able to open new positions in Algorand, Decentraland, Dash, and Polygon. Despite the changes, users will still have the ability to hold and sell existing positions in these cryptocurrencies.

Just a month earlier, on June 9, Robinhood also made headlines when it announced the delisting of Solana, Cardano, and Polygon. This follows recent charges by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, alleging that these platforms traded unregistered securities. Given these circumstances, analysts predict a further decline in cryptocurrency trading activity on Robinhood.

Both eToro and Robinhood’s decisions highlight the complex nature of global cryptocurrency regulations and the need for platforms to adapt swiftly to protect user interests and ensure compliance. The trading platforms’ strategic shifts are significant for users seeking updates on cryptocurrency strategies amidst a dynamic U.S. regulatory environment.

Despite the changes, eToro remains committed to promoting a diverse range of asset classes, including stocks, Exchange Traded Funds (ETFs), and options, reinforcing their support for crypto assets. The company also pledges to work closely with regulators around the world to shape the future of the crypto industry and advocate for access for everyday investors.

This news reaffirms the unique challenges cryptocurrency platforms face while navigating regulations. Changes to crypto offerings, especially in the U.S., are provoking discussions about the future of crypto regulation. As the regulatory landscape continues to evolve, investors and users will be closely monitoring platforms like eToro and Robinhood for further updates.

eToro encourages customers with queries about these changes to contact its customer service team. Meanwhile, industry watchers anticipate more platforms to realign their strategies in response to changing regulations, impacting the availability and trading of various cryptocurrencies.


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MATIC Burn Begins as EIP-1559 Live on Polygon Mainnet

Polygon – one of the most popular layer-2 scaling solutions of Ethereum – saw its mainnet implement one of the biggest upgrades recently. Namely, this is the Ethereum Improvement Proposal 1559 that will begin burning MATIC tokens as part of every transaction.

Polygon Integrates EIP-1559

CryptoPotato reported last week that EIP-1559 was scheduled to go live soon. The team officially announced that the update has been rolled out on January 18th at 3 AM UTC, following a successful upgrade of its Mumbai testnet.

Among other things, perhaps the most important change that will happen to Polygon’s network is the introduction of a deflationary token burning mechanism that will begin destroying the network’s native MATIC token while also improving fee visibility.

EIP-1559 gets rid of first-price auction as the main mechanism for fee calculation. Instead, there is a discrete base fee for transactions to be included in the next block and a priority fee to speed up processing. The base fee, which fluctuates depending on network congestion, is then burned. – Reads the official announcement.

The upgrade itself was supported by major exchanges, including Binance. It took place at block height 23,850,000.

Implications on MATIC’s Price

At the time of this writing, MATIC’s price is down 7.8% in the past 24 hours. Nevertheless, it’s worth taking a look at the longer-term implications of the introduction of a burning mechanism.

Unlike Ethereum, however, MATIC has a fixed supply of 10 billion, so any reduction in the overall number of tokens available on the market will have a definitively deflationary effect.

The team has already simulated the potential impact on MATIC’s total supply, taking Ethereum’s experience since the London hard fork and the conclusions suggest an annualized burn of 0.27% of MATIC’s total supply.

The analysis itself can be found here.

The official post also reads that:

The burning is a two-step affair that starts on the Polygon network and completes on the Ethereum network.

There’s also a public interface where users would be able to monitor the whole process, but that’s yet to go live at the time of this writing.


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Ascending channel pattern sets Polygon (MATIC) up for a potential 30% rally

Polygon prices look poised to rise by at least 30% in the wake of a key Jan. 18 upgrade that would push a considerable portion of its native MATIC token out of circulation.

Dubbed EIP-1559, the improvement proposal originally came to light as part of Ethereum’s so-called London Hard Fork upgrade on Aug. 5. The proposal effectively started destroying, or “burning,” a part of the fees paid to miners via Ether (ETH).

Traders and investors raised their bids for Ether before and after the EIP-1559 upgrade, noting that it made Ether a deflationary asset for the first time in history. For example, a model created by Ethereum co-founder Justin Drake claimed that EIP-1559 would reduce Ether’s annual supply by 1.6 million ETH.

MATIC looks for new record highs

Polygon, which acts as a layer-2 protocol built to scale Ethereum’s prevailing scalability issues, rolled out a testing implementation of EIP-1559 on Dec. 14, 2021. After the test net launch, MATIC price rallied by almost 30% to $2.35, which includes a brief run-up to its record high near $3.

MATIC/USD daily price chart. Source: TradingView

In theory, a lower supply against a rising demand would make the asset more valuable in the eyes of its bidder.

This classic economic reference has assisted in boosting demand for cryptocurrencies like Bitcoin (BTC) before. Issuance would be halved every four years against a limited supply cap of 21 million units. This begs the question, could the MATIC price rally in the same way? Mineplex co-founder Alexander Mamasidikov thinks yes.

Mamasidikov told Cointelegraph that EIP-1559 would impact MATIC price positively, adding that it could easily rally toward its current record high following the technical upgrade.

“In periods of price recovery, investors are often on the lookout for both technical and fundamental features to hang onto in order to back a coin, and Polygon brandishes both,” he said, adding:

“While Polygon remains a better version of Ethereum in terms of lower transaction costs, it is also the delight of retail investors with respect to its low price at this time when compared with Ethereum or other smart contract networks.”

What do Polygon’s technicals say?

MATIC has been trending higher inside an ascending channel pattern since July 2021, confirmed by at least two reactive highs and two reactive lows.

The token recently retested the channel’s lower trendline around $1.89 as support, a move that was followed up with a bullish retracement toward $2.50. It now acting as resistance and the $2.50 level also turned out to be near the 1.00 Fib line near $2.44.

MATIC/USD daily price chart featuring ascending channel pattern. Source: TradingView

That being said, MATIC may attempt a break above the $2.44-resistance around the EIP-1559 upgrade on Jan. 18. The move would set itself on a course to test its interim upside target near $3, which is approximately a 30% jump.

Related: Polygon network activity spikes as NFT sales reach new height

Meanwhile, if the EIP-1559 factor plays out any longer than anticipated, MATIC price may even attempt an extended run-up toward the 1.618 Fib line around $3.52. Conversely, a rejection at $2.44 could have Polygon retest the ascending channel support for a negative breakout.

Such a move would risk invalidating the bullish setup, as discussed above. All of this is in conjunction with exposing MATIC to a correction toward $1.77 or lower.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.