Robinhood trading stop of Solana, Cardano and Polygon as well as market rumors can continue to bleed altcoins

Even though Bitcoin and Ethereum were clearly spared from this weekend’s declines, they too have seen drops of around 4% and 7% over the past week. News that Robinhood, still the most popular mobile phone trading app in the US, is planning to ban more altcoins, could also lead to further selling pressure in the next few weeks.

Unsubstantiated rumors that surfaced on Twitter, claiming that the US wants to ban altcoin trading completely, also didn’t help.

Sneaky

While we all watched Bitcoin’s dominance rise, as altcoins fell and the SEC (in its suit against Binance and Coinbase) appears to have no problem with the largest digital currency, Robinhood made a sneaky announcement. Subtly, the mobile trading site, which became very popular during the Covid-19 pandemic, noted that it would soon be dropping support for several popular cryptocurrencies.

#BTC Update

The price dumped because of the rumors that $1.3B worth of altcoins (excluding Bitcoin, Ethereum and Doge) held at Robinhood COULD BE dumped on the market over the next 2 weeks. pic.twitter.com/B0ya0DrS6t

— Davis_Crypto🚀 (@DavisP_Crypto) June 11, 2023

Robinhood said:

We regularly review the crypto we offer on Robinhood. Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET. No other coins are affected and your crypto is still safe on Robinhood.

At first the news was not considered to be very important, but this Sunday it became clear to traders in America that they should sell their Cardano, Polygon and Solana coins if they have them at Robinhood. This may take some time as it is claimed that Robinhood owns about $1.2 billion in altcoins and could therefore weigh on the market for a few more weeks.

Rumors

The rumor that the United States wanted to ban the trade in all altcoins, started by the famous crypto influencer Ran Neuer, did not help either.Towards the end of the day, Twitter added some lines under his post, stating that his info wasn’t actually proven.

The US didn’t ban anything. The SEC can’t enforce anything until they prove it in court. Look at $xrp as an example of how ineffective the SEC actually is. This is however a fantastic opportunity to load up on altcoins at extremely low prices! Also Ran Neuner is a birdbrain. https://t.co/7Le4TFMCCI

— Kara Szabo (@kararesurrect) June 10, 2023

Exciting days to say the least.