Cardano (ADA) is in uncertain territory. It is one of the cryptocurrencies used by the US Securities and Exchange Commission (SEC) has been labeled ‘effect’. ADA was labeled as a security in both Binance’s and Coinbase’s lawsuits, which is currently leading to a lot of uncertainty within the community. The Cardano Foundation, the organization that oversees the development of the Cardano blockchain, has since opposed this claim, and Charles Hoskinson, the founder of Cardano, has emphasized the importance of being a crypto community to join hands.
Despite perhaps reassuring words from the Cardano Foundation and Hoskinson, many investors are concerned about the future of the native token of the popular smart contract network. This is also strongly reflected in the price performance of ADA over the past week.
Cardano is going down hard
You may have already seen it in the altcoin news: ADA has been one of the hardest fallers of the past week when it comes to the big boys in the industry. Together with build ‘n build (BNB) and polygon (MATIC), they are the worst performing crypto coins, each of which is now considerably lower than seven days ago.
All three of these altcoins were part of the list of cryptocurrencies that the SEC considers to be securities, leading many investors to fear that they will eventually disappear from the (US) exchanges. Securities may only be listed in the United States with the appropriate permits.
This has resulted in increased selling pressure, which is currently clearly visible in the prices. For reference, bitcoin (BTC) is currently down just 1.5 percent from a week earlier.
As a result of the SEC allegation, cardano has lost more than $3 billion in market cap in the past week. It is in the red by no less than 24 percent over the past seven days, which means that the price at the time of writing is $ 0.2873.
After Robinhood announced that it will be removing cardano, like polygon and solana (SOL), from the platform, the price drop kicked into high gear.
The lion’s share of ADA holders records a loss
Currently, as many as 3.67 million Cardano wallets are in the red, according to data from IntoTheBlock. This huge pile of addresses represents no less than 83 percent of all addresses on the network.
Only 11.44 percent of the addresses would be at the current ADA rate holdings can sell at a profit. In addition, 4.95 percent of addresses would currently break even to stand.