Robinhood recently announced a layoff of 7% of its workforce, coinciding with its decision to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27. This move signifies a shift in the platform’s supported cryptocurrencies and has implications for users invested in these particular digital assets.
Cardano (ADA), Solana (SOL), and Polygon (MATIC) are expected to face a long-anticipated selloff from Robinhood Markets and Celsius. Robinhood plans to sell these cryptocurrencies on June 27, while Celsius intends to liquidate its crypto holdings gradually starting from July 1.
Additionally, Robinhood will be laying off approximately 150 employees, which accounts for about 7% of its workforce. This decision is driven by reduced trading volume and a need to align the team structures more effectively.
Selloff Pressure on Cardano, Solana, and Polygon (MATIC):
Following the US Securities and Exchange Commission (SEC) lawsuits targeting Binance and Coinbase, Robinhood made the decision to terminate its support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27, 2023, at 6:59 PM Eastern Time (ET). The SEC’s consideration of these prominent cryptocurrencies, including Cardano (ADA), Polygon (MATIC), and Solana (SOL), as securities received strong criticism from the crypto community.
In the past two weeks, Robinhood users have taken actions to withdraw or sell approximately half of their holdings. It is estimated that Robinhood will sell around $15 million worth of MATIC, $25 million of SOL, and $30 million of ADA. These significant sell-offs indicate a notable shift in user sentiment and investment choices on the Robinhood platform.
Jump Trading, the firm responsible for managing crypto assets for Robinhood, plans to liquidate all remaining holdings right after 6:59 PM ET on June 27th. Experts suggest various options for the liquidation process, including selling it over-the-counter (OTC), incorporating it into their own portfolios, hedging with perpetual contracts, or depositing it into centralized exchanges. These considerations highlight the available strategies for Jump Trading to efficiently handle the liquidation of Robinhood’s crypto holdings.
Furthermore, Celsius, as per their filing, will initiate a gradual liquidation of their crypto assets starting from July 1. The firm currently holds approximately $2.5 million worth of SOL, $26 million of ADA, and $60 million worth of MATIC. Following the announcements by Robinhood and Celsius earlier this month, Cardano, Solana, and MATIC have exhibited underperformance compared to the broader market and their respective peers.
Currently, the price of ADA is $0.27, experiencing a 3% decline over the past 24 hours. Similarly, Solana is trading at $16.46, showing a 3% drop, while Polygon (MATIC) is priced at $0.65, down 1% within the same 24-hour timeframe. These figures indicate the recent downward trend in prices for ADA, Solana, and MATIC.
Robinhood Reduces Workforce by 7% through Layoffs:
According to a report from the Wall Street Journal, Robinhood Markets is cutting approximately 7% of its full-time workforce. This layoff is projected to impact around 150 employees, marking the third round of job cuts within a year for the online brokerage firm.
Robinhood is currently encountering difficulties stemming from a decline in both monthly active users and revenue. The decrease in trading volumes and the mounting regulatory pressure have introduced additional challenges for the online brokerage firm.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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