The cryptocurrency market witnessed a significant decline over the weekend with cryptocurrencies like MATIC, SOL and ADA going through a 25 percent drop . While the exact reason for these declines remains unclear it is believed that the recent lawsuits filed by the SEC against Binance and Coinbase exchanges played a major role in this .
Scrutiny on Trading Companies: Jump Trading Transfers Millions of MATIC
The activities of trading companies came under scrutiny as investors questioned the reasons behind the market sell-off . Notably, Jump Trading which is one of the largest market maker companies operating in the cryptocurrency market transferred around 22 million MATIC tokens which is equivalent to approximately $14 million from its Robinhood account to Binance and Coinbase exchanges prior to the crash . These transactions began yesterday evening and continued until early morning and they involved more than 10 transfers .
Currently Jump Trading holds a substantial amount of cryptocurrencies which total to $3 .483 million . The majority of this amount is in ETH with $3 billion, followed by $200 million in SHIB and the remainder in MATIC, USDT, WETH, AVAX and LINK .
MATIC’s Steep Decline and Robinhood’s Delisting Decision
Following the overall downward trend MATIC experienced a gradual decline yesterday evening which further deepened this morning . The cryptocurrency retraced 35 percent from its peak of $0 .78 to $0 .50 . As of 14:00 CEST MATIC is trading at $0 .58 .
Adding to the market turbulence Robinhood announced its decision to delist MATIC, ADA and SOL from its list of supported assets . This move by Robinhood came as a response to the SEC’s classification of these assets as investment contracts .
The SEC’s lawsuits and the successive delisting decision have undoubtedly contributed to the volatility and downward pressure on the affected cryptocurrencies . As investors navigate these uncertain times the market remains on edge and await further developments in the regulatory landscape .
