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Binance exchange, the biggest crypto trading platform in the world, has announced its plans to withdraw support for some Cardano (ADA) and Polygon (MATIC) peers. The withdrawal of this support implies it will delist the affected trading pairs, featuring the Leverage and Margin Tiers of USDⓈ-M ADABUSD and MATICBUSD Perpetual Contract.
Binance exchange did not reveal the exact reasons why it plans to withdraw its support for these trading pairs; however, the brokerage firm advised its users to close their positions before Aug. 17 by 9:00 a.m. UTC. According to Binance, an automatic settlement will be carried out on the due date, and the selected pairs will be delisted afterward.
Probable reasons for delisting
The past few weeks have been filled with a lot of uncertainty as concerns the duo of Cardano and Polygon, which are just two of the total digital currencies that have now been tagged as investment contracts by the United States Securities and Exchange Commission (SEC).
This designation sparked a lot of uncertainty on the future of these tokens, and while Binance typically serves no U.S. customers, staying off the radar of the market regulator and compounding its current lawsuit is perhaps a good strategy.
The leverage and margin tiers of the ADABUSD and MATICBUSD perpetual contracts are quite risky products to offer, and seeing as BUSD has also been placed on the regulator's securities tag radar, delisting the pairs appears to be the right move.
Other top trading platforms like Robinhood and eToro have also delisted the Cardano, Polygon, and Solana (SOL) pairs, as reported earlier by U.Today.
Hopes for redemption
Although the U.S. SEC has not directly charged the start-ups behind each of these impacted coins, a strong rebuttal has been issued by both the Cardano Foundation and Solana Foundation regarding the SEC's allegations.
For now, the success of Ripple Labs in the ongoing legal battle with the SEC over the status of XRP is a major source of hope that can guarantee redemption for ADA and other affected tokens in the long term.
Alex Dovbnya
Valeria Blokhina
